Ernst & Young: Investment in UK’s energy sector at 20 year high

By Rob Starr, Content Manager, Big4com

According to Ernst & Young’s Powering the UK report, over £43bn has been invested by energy companies in the UK in the last 4 years.

“Our research shows record levels of investment in the UK’s energy infrastructure at a time when investment across the economy as a whole is slowing. 2011 alone saw in excess of £10bn invested, with the industry delivering 6% growth in employment across the UK. This investment momentum has been the result of trust engendered by the historically clear path in energy policy. However, the transition to a low-carbon economy, and the further acceleration of investment, means more needs to be done – and we are not presently on track,” says Tony Ward, Power & Utilities Partner at Ernst & Young.

“Confidence is vital; whether it’d be to invest, to ensure that we are working towards a fuel mix and infrastructure that will enable long-term security of supply and stability in energy prices, or to enable the creation of jobs in an evolving energy sector that involves both users and producers. This can be achieved through the consistent and clear articulation of the direction and objectives of UK energy policy backed up by decisions that are in line with those objectives. With Electricity Market Reform (EMR) still to be delivered in its final form, and short term focus seeming to drive many recent statements, creating confidence cannot be taken for granted.”