The results of the CBI’s latest survey shows business leaders and households underestimate the importance of a low carbon energy transition, whilst overestimating the role played by energy company profits in lifting bills.
The CBI’s deputy director-general Katja Hall is expected to tell delegates at an energy conference on Thursday that short-term thinking poses a threat to the long-term certainty needed to secure investment in UK energy.
“Long-term certainty is needed but just as policies start to click into place, the political climate heats up again. It feels like a game of snakes and ladders,” said an advance copy of Hall’s address.
“One careless comment or populist proposal – whether we’re talking about cutting support for onshore wind farms or freezing energy prices – can make businesses feel like they’re right back at square one.
“For investors, this is a real worry. And when that investment can go anywhere in the world, it should be a real worry for politicians too,” Hall will say.
The association’s report shows that one in three businesses disagree that taking action to cut carbon emissions will deliver long-term economic opportunity (32 per cent), while nearly one in four consumers are unsure (23 per cent), “suggesting more must be done to communicate the importance of, and opportunity presented by, the low-carbon transition,” said a statement from the CBI.
In addition, the CBI says its survey found that the majority of people blame energy company profits as the key reason for rising bills, with 53 per cent of business leaders and 61 per cent of consumers citing this as the main reason despite profits accounting for only 4.3 per cent of an average bill in 2012.
“People don’t necessarily get how our energy objectives relate to each other, let alone how they relate to the bills they pay each quarter, leading to a lot of misunderstanding and mistrust.
“With profits very much under the spotlight, it’s important to remember that companies need to make a fair return in order to make the investments we so desperately need. But it’s right to demonstrate to consumers that there is nothing to hide,” said Hall’s address.