CBI issues warning of future UK energy infrastructure

26 April, 2011 Policy uncertainty could hamper investment in the UK's energy infrastructure.

The Confederation of British Industry (CBI) has warned the future of the UK's energy infrastructure could be at risk if government policy is not clarified.

Over the next 20 years £150 billion of private sector investment is needed to support the power sector, the body outlines in its new report Risky Business: Investing in the UK’s Low-Carbon Infrastructure.

However, investors are currently faced with uncertainty and senior business leaders believe the UK may not be able to attract the level of financial support needed.

The CBI is now calling on the government to put in place a clear and concise roadmap to deliver low-carbon growth and implement a planning system which will allow the energy sector to flourish.

It is also appealing to the government to deal with the backlog of planning applications relating to energy as the Major Infrastructure Planning Unit is formed.

"Businesses want to get on with building new low-carbon infrastructure, but there is still too much policy uncertainty. We need the government to set a clear direction of travel and to stick to it," Katja Hall, chief policy director for the CBI, said.

Overall £200 billion will be needed in the next two decades to update the UK's power infrastructure and secure supply. 

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