Partner Article

Businesses asked for their views on energy regulation

Today the Government opens its Energy Red Tape Challenge initiative, encouraging businesses to supply their views on energy legislation.

Businesses are being asked to share their views on whether current regulations are creating administrative burdens, and what could be done to implement more effective policy.

The initiative covers roughly 300 regulations which relate to all aspect of UK energy, from extraction and generation, to safety, supply and consumption.

Energy firm npower have already sought the views of almost 100 major energy users as part of its own “Red Tape Challenge - Have Your Say” campaign, which was designed to provide businesses with a less time-consuming way to air their views on the UK energy market.

Their research asked businesses about energy legislation they would keep, simplify or scrap.

Results show that 51% of respondents thought the Carbon Reduction Commitment Energy Efficiency Scheme should be scrapped, and 43% thought Renewables Obligation and Feed-in-Tariffs should be simplified.

Wayne Mitchell, interim industrial and commercial markets director at npower, said: “We welcome the Government’s commitment on reducing the legislative burden of regulation on British businesses, both through this initiative and the promise of added support to help energy intensive businesses in the chancellor’s autumn statement later this month.

“Our consultation with major energy users shows very clearly that businesses want simplification on certain energy policy, not only to help them manage their own obligations, but to also help the UK meet its carbon reduction targets and help raise the investment needed for low carbon generation.

“It’s important that today’s event is a welcome opportunity to feedback these views to Government and start the conversation about how we work to alleviate businesses’ concerns.”

Many energy users in the study suggested that current UK energy regulations will not raise the investment needed to ensure the country’s low carbon future.

Part of the research involved consulting with major energy users on the Government’s Electricity Market Reform (EMR) White Paper package.

Wayne continued: “Our research has found that businesses are worried about the EMR and frustrated due to the levels of uncertainty around it. Businesses need clarification on the future energy policy to help ensure certainty around future investment decisions.

“Some businesses we spoke to also voiced concern that if companies don’t have to be in the UK, then in the future they may seriously consider moving their operations to more regulation-light climes, if they haven’t already.

“This is a scenario no one wants to reach and hopefully one that can be avoided through greater communication between government and businesses on energy legislation: businesses want to be heard.”

This was posted in Bdaily's Members' News section by Tom Keighley .