The urgent need for clarity and
a coherent, co-ordinated
energy policy for the UK is
highlighted in a report published by
the London School of Economics
aimed at the UK’s business sector.

The npower Future
Report, ‘Demanding
times for energy in the
UK’, examines the key
challenges the energy industry is
facing and assesses the impact these
could have on UK businesses and
what could happen if Government
does not deliver co-ordinated and
coherent policy reform on schedule.

It is predicted that £200bn of new
investment is required by 2020 to
replace ageing energy infrastructure
in the UK and move toward smarter,
lower carbon technologies. However,
Government reform designed to
attract investment relies on finding a
balance between cost, carbon and
continuity of supply that’s acceptable
to customers and to the UK
economy.

The report says that if the current
energy policy receives the required
investment and
legislative support, there
will be low to moderate
costs for consumers and
low future environmental costs. If
Current Intent strays, it could lead to
one of three scenarios: New dash for
gas; investment shortfall; spiralling
costs.

The report also addresses what
businesses can do to negate the risks
so they can remain competitive and
concludes that forward-looking
businesses can take control and
protect themselves from risk.