EEF, the manufacturers’ organisation, has urged the government to move as quickly as possible to set out a balanced long term energy strategy, with all options available including nuclear, as part of its energy review consultation to be published today.
The UK’s energy supply has taken on a renewed sense of urgency during this winter given large rises in gas prices (50-80% for manufacturers contracting since the summer) and fears over the security of supply, not only in the immediate period, but in the longer term given the UK’s increased dependence on imported energy supplies and dwindling north sea oil reserves.
In addition the UK’s carbon emissions have risen in both 2003 and 2004, leaving the government well off its own domestic target, though still likely to meet our Kyoto commitments.
EEF believes that, whilst there are limits to what the government can do regarding the current energy situation, it highlights the need for a sustainable long term energy strategy. Without such a strategy in place, EEF believes that industry’s competitiveness will be threatened by a more expensive and less reliable supply of energy and that there will be little chance of meeting the government’s aspiration to reduce carbon emissions by 60% by 2050.
Commenting on the consultation, Director General, Martin Temple said:
“The recent energy scares have served to bring this issue right to the top of the political and business agenda. Whilst there is only a limited amount that the government can do now about the immediate problems, there is no time to lose in putting in place a long-term strategy that will provide a competitive, reliable and secure supply and generate a significant reduction in emissions. Business is looking to government to take a lead on this issue.”
EEF has set out its own long term energy strategy in a report presented to government which includes a range of options which feature fossil fuels (gas and coal), renewable energy and nuclear power. EEF therefore recommends a number of steps for government:
addressing planning, licensing and liabilities issues that will make a substantial difference to the rate of return required by investors in nuclear power
make a decision on the disposal of radioactive waste
exempt nuclear power from the climate change levy, given that it emits no carbon, which would sent out a powerful signal to potential investors
replace the current Renewables Obligation with a low carbon obligation in 2015 that covers all energy sources with low or zero carbon emissions
improve the effectiveness of measures to increase energy efficiency across the economy
Increase incentives to invest in new energy sources such as 'clean coal