Successful UK Energy policy needs a fusion of diversity, flexibility and efficiency

11 July 2006

Responding to the statement by the Secretary of State for Trade and Industry in the House of Commons today, IoD Director General, Miles Templeman said:

“UK Energy policy needs a fusion of diversity, flexibility and efficiency. Ultimately, British bosses want to see decisions driven by economic and market forces – not hot air and hysteria.

“The Secretary of State today listed affordable energy as the 3rdobjective for the UK’s Energy policy – British bosses feel that cost should be at the centre, and not the periphery of the debate. There must be far more emphasis on energy competitiveness.

A successful energy policy for business must include:

Diversity – British bosses are fully committed to an expansion of both nuclear and renewable sources. 68% of IoD members wish to see an expansion of nuclear capacity, with 84% wishing to see an expansion in renewable sources.

Flexibility – We need to respond to market forces and technological innovations over time.

Efficiency – We want to see energy consumption growing by much less than economic growth.

Miles Templeman added:

“If we want to tackle concerns about energy costs and climate change then the first place to look is through a more efficient use of energy.
I have no doubt that it will be business which transforms the future efficiency of energy use in the UK.”