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Manufacturers concerned about impact of renewable energy policy

According to a new survey of British manufacturers by npower Business Solutions, many are concerned about changes to government policy on renewable energy and warn there is still too much bureaucracy, despite efforts to simplify the energy landscape.

The research found that four out of five (81%) thought it is important that British businesses influence changes to the Climate Change Levy (CCL) and Carbon Reduction Commitment (CRC).

A further 65% said they are concerned that upcoming reforms may impact investment in renewable and, despite government efforts to simplify energy policy, three quarters (74%) of manufacturers agreed or strongly agreed that there is too much energy-related bureaucracy for businesses

Finally, a majority (57%) think current and planned energy policies don’t reflect the needs of British businesses.

Manufacturers surveyed thought that removing the Climate Change Levy (CCL) might penalise companies which invest in green energy and 65% of manufacturers said they were concerned or very concerned about the impact of removing the CCL exemption on investment.

These figures come in the midst of a time of great change for the energy industry. The Chancellor recently promised to review the business energy regulatory framework and a consultation has been launched to discover the opinions and concerns of British businesses.

The upcoming consultation will consider the CCL and CRC Energy Efficiency Scheme and how they both interact with other energy efficiency policies and regulations. Three quarters (74%) of those surveyed in the sector felt strongly or very strongly that they were overburdened with bureaucracy. The consultation looks likely to arouse interest; four in five respondents (81%) said they think it is important that British businesses influence changes to the CCL and CRC.

Wayne Mitchell, director of Markets & Innovation for npower Business Solutions, said: “Our survey clearly shows that while manufacturers welcome changes to simplify the energy landscape, these cannot be made at the expense of encouraging green energy. The Government must maintain the balance between reducing the regulatory burden on businesses and providing incentives for investment in renewables.

“Some are speculating that the CRC scheme will be removed, with the CCL being used to address the shortfall in funding. We would support this measure in principle if costs were allocated fairly, however quick decision making on this is essential to ensure businesses have certainty.

“We welcome this proposed review of business energy incentives, indeed we have been campaigning for this as far back as 2011 – it’s a positive step and it is right that the Government is looking at the impact excessive ‘red tape’ can have on businesses. The upcoming consultation gives a fantastic opportunity for all businesses, big and small, to get their voices heard.”

 

 

28 September 2015

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