Single Market for Energy a Top Priority for EU

7 March 2006

Business Group Publishes Energy Survey

The European Union should extend the Single Market to cover the energy industry, UK business leaders said today. Allowing Member States to protect their own national energy interests is counter-productive to the needs of EU citizens, the Institute of Directors (IoD) argued.

Speaking ahead of the publication tomorrow of an EU consultation on energy policy, the IoD said opening up the energy markets of all Member States would benefit consumers and businesses alike and address issues of security of supply for the EU as a whole.

Miles Templeman, Director General of the IoD, said:

"The EU is the world's second largest energy market but it is not yet a single energy market. It is high time that energy was included within the Single Market. Domestic customers and businesses of all sizes stand to benefit if the EU is prepared to face up to this key issue."

Publishing a survey of its members' views on energy issues, the IoD claimed that almost 60% of British bosses want to see the EU liberalise energy markets. They also want to see diversification, both nuclear power and renewables. Diversification should play a much bigger role in the UK's energy mix, bosses indicated, with 68% in favour of nuclear and 84% pro renewables.

With regard to prices, a substantial 68% of directors expect energy prices to increase significantly over the next five years regardless. Over 50% think that the UK Government has placed more costs on its domestic energy industry compared to that of other EU governments.

There was also deep concern about the threat to the energy supply with around 50% admitting to being very concerned about future disruption to energy supply.

In conclusion, Miles Templeman, said:

"Support for one form or another of energy technology need not be a religion, it's not about dogma - it's about sensible market solutions."