The Confederation of British Industry (CBI) has called on the government to overhaul “complex regulations” which it says is holding back investment in energy efficiency.
In an open letter signed by CBI director-general Carolyn Fairbairn and a host of other chief executives and chairmen from major British businesses, the trade group has criticised the government for failing to enact a coherent energy policy.
Central to its criticism is the impact on investment caused by the government’s energy strategy to date, however the letter also bemoans that companies aiming to reduce their energy consumption had been hampered by bureaucracy.
“We… need an overhaul of complex regulations holding back investment in energy efficiency – so that the best intentions to support firms to reduce their energy use and carbon impact are not lost in bureaucratic ‘green tape’,” it reads.
The government is currently in the midst of a complete overhaul of how businesses report energy efficiency and carbon emissions. The Carbon Reduction Commitment (CRC) scheme is up for abolition as HMT prepares to introduce a single reporting mechanism, due to be unveiled at the chancellor’s budget on 16 March.
Companies fitting certain criteria must also have submitted compliance details or an intent to comply form under the Energy Savings Opportunity Scheme (ESOS) to the Environment Agency by Friday’s deadline or risk being penalised.
The letter argues that businesses are now investing in ways to improve their energy efficiency, consumption and overall demand, mainly through the roll-out of smart meters. But it goes on to state that the transition to low-carbon power needs to be managed “while keeping costs affordable and our energy supply secure”.
“UK industrial firms already pay higher electricity costs than EU competitors, and spare capacity on our grid is getting squeezed as we phase out older power stations.
“Getting the investment we need to address this requires clear leadership and stable policy from government. We need more of this in 2016,” the letter states.
It is not the first time the CBI has addressed the government on energy matters. In September last year former director-general John Cridland criticised government’s stance on renewables, prompting prime minister David Cameron to remark that those who condemned the government’s roll-back of clean energy policies were talking “total and utter nonsense”.
