CBI: Govt must step up response to energy crisis

The UK government’s new energy strategy sets an ambitious bar for a more resilient, low carbon energy system, but does not go far enough to address the current crisis.

“Increasing our domestic generating capacity is an essential part of dealing with the current energy crisis,” said Rain Newton-Smith, CBI chief economist. “Big bets on nuclear will provide clean and stable power for consumers and businesses. This scale of ambition should be replicated for other renewable technologies like onshore wind. Commitment to planning reforms and rapid approvals is what will really make the difference now.

“While it’s welcome this strategy addresses some long-standing challenges, companies are continuing to really struggle with increased wholesale energy costs right now. The government’s next step should be to provide immediate cashflow support for firms through the Recovery Loan Scheme – and move to cut bills for energy-intensive industries to maintain competitiveness."

A national programme for household energy efficiency upgrades should also follow this strategy, the group added.

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