Business energy investment 'at risk'

10/03/2010

Some £50 billion of investment in business energy infrastructure could be at risk due to regulation issues, a new report has warned.

An Ernst & Young study featured in the Financial Times shows that the money needed for energy infrastructure to secure power supplies could be threatened by uncertainty over regulation caused by the impending general election.

Commissioned by energy suppliers Scottish & Southern Energy (SSE), the report suggests a lack of clarity over residential and business gas and electricity policies could lead to an "investment hiatus".

This could adversely affect business electricity supply within the next ten years, the company said.

Ernst & Young said that over the next three years, energy suppliers must commit between £35 billion and £50 billion of investment in power stations, wind farms and gas storage in order to cut carbon dioxide emissions while providing reliable energy supplies.

On a separate note, SSE is to become the first utility firm in the UK to build and monitor its own zero carbon homes.

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Posted by Richard Smart