Businesses concerned by cost of coalition’s green energy policy

LEADING businesses believe the government’s flagship energy policy will be a burden on industry and make it more difficult to predict costs, according to a report released today by Npower.

The energy supplier found nine out of ten companies believe the £110bn Electricity Market Reform (EMR) programme – which guarantees a fixed price for green energy production – could impact on the competitiveness of the UK economy.

A majority also expressed concern about the need for additional information on how the reforms will affect their business.

The reforms are contained in the Energy Bill currently working its way through parliament and include substantial subsidies for low-carbon energy production such as wind, wave and nuclear power.

“It’s no surprise, in the light of economic challenges, that cost implications top the list,” said Npower’s Wayne Mitchell.

“It is, however, revealing that businesses are worried about the impact on UK competitiveness, as the last thing government will want is businesses moving abroad as a way around EMR.”

The research was based on a survey of 66 energy managers at leading UK businesses.