Majority of UK businesses concerned about Electricity Market Reform
Three quarters of UK businesses are worried about the impact Electricity Market Reform (EMR) will have on their business, with cost of energy, ability to forecast costs and impact on UK competitiveness topping their list of concerns. These findings are from new research by energy firm npower.
‘EMR Pulse’, a new online survey designed by npower to give businesses a quick and easy way to air their views on Electricity Market Reform (EMR), has gauged awareness of and opinion from senior energy managers at major energy users and energy consultants on the EMR, the Government’s flagship energy policy which aims to deliver investment in low-carbon electricity.
npower’s research found that businesses have concerns about how EMR will impact them, with cost at the forefront of their mind. Nearly all businesses (97%) are worried about how the legislation will affect the cost of their energy and 91% are worried about the ability to forecast costs. Further to this and linked to financial concerns, 86% of businesses highlighted the impact on UK competitiveness as an area of uncertainty.
Wayne Mitchell, Industrial & Commercial Sales & Marketing Director, said: “From our ongoing dialogue with major energy users, we know businesses are concerned and confused about the impact EMR will have on their operations but it’s been really eye-opening to uncover exactly what these concerns centre on. It’s no surprise, in the light of economic challenges, that cost implications top the list. It is, however, revealing that businesses are worried about the impact on UK competitiveness, as the last thing Government will want is businesses moving abroad as a way around EMR.
“What is concerning is that 15% of businesses have no awareness of EMR at all, or don’t think it will impact them. That’s why at npower we are working to help educate businesses on EMR and how it will affect them but also to help energy managers understand that while they don’t have direct control over energy legislation, they can mitigate its impact by taking firm control of energy purchasing and management to manage costs."
The npower ‘EMR Pulse’ will run four times a year and each survey will focus on a special topic. In this instance npower also gave businesses a chance to have their voice heard in the Government’s consultation on proposals to exempt the most electricity intensive industries from a proportion of the costs of Contracts for Difference (CfD) – a key component of EMR. npower will report the findings on CfD to Government as part of its response to the consultation.
Further information on npower’s EMR Explained initiative and have your say in the next EMR Pulse survey.