npower Reports Businesses Call For Government Help To Keep The Nation's Lights On
Released on: July 18, 2011, 10:27 am
npower has reported that energy risk - particularly in terms
of security of supply and supply costs - has been identified as the top
risk major business energy users are facing, above legislation,
security and health & safety. Added to this, many believe it is the
government's responsibility to help reduce instability through funding
for self generation projects and demand management tools to bridge the
supply gap and keep the nation's lights on.
These were some of the key findings of the npower Business Energy Index (nBEI), an annual
report tracking business opinion on energy use, energy risk and carbon emissions.
According to the report, when asked what was of most concern in relation to energy
within their business, supply costs came top with a risk ranking of 6.6 out of 10,
followed by security of supply with a ranking of 6.1.
However, despite an energy risk being identified as a
top concern, one in six major business energy
users still do not have a policy in place to manage it - although 91% do have one in
place for health & safety, a more ‘traditional’ business risk.
David Cockshott, director of industrial and commercial markets at npower commented: "It is worrying that while businesses have identified that risks associated with
energy - from security of supply to cost - pose a real threat to their immediate and
future operations, many have admitted to not having a strategy in place to manage
it. While many businesses have embraced the benefits of energy management and
energy efficiency, when it comes to solutions to manage risk, there is less of a
focus from organisations.
"This could be because they don’t believe the two main areas of concern - cost and
supply - are something within their control. However, there are ways businesses can
mitigate their risk, including investing in self generation or demand management
Despite their concerns over energy risk, nearly two thirds (62%) say that investing
in self generation and demand management technology is not a business priority.
While 51% cite lack of finance as a barrier, and 38% say they simply do not have the
resource to manage the project.
When asked who should finance investment in self generation, 61% of businesses of
all sizes felt that the government should be responsible - only 18% believe it
should be self funded. While the government’s proposed 'Green Deal' should go
some way to assisting SMEs, it would not provide the same help for larger energy
David Cockshott continued: "While this year's nBEI shows that more
easy-to-implement energy efficiency measures and improvements are happening across
businesses of all sizes. When it comes to large scale self generation projects or
demand management initiatives, there is still some resistance.
"What is clear however, is that businesses believe that investment in these areas
should come from government. While the government is keen to support smaller
companies through initiatives such as the Green Deal, the report shows that larger
businesses believe the government should also look at ways to help them. For
instance, to mitigate risk and reduce instability through incentivising self
generation and demand management tools."
Notes to Editors
The npower Business Energy Index is an annual report tracking the opinions of 300
businesses in the UK. The research was conducted by Datamonitor from March – May
2011 by telephone interviews.
npower is one of the top business energy suppliers to the UK
business market, serving over 238,000 small to medium sized enterprise sites and
around 17,000 industrial and commercial customers, with over 100,000 sites with
business gas and business electricity. Npower also assists with business energy
efficiency through its SmartStart
1 Bridgewater Road
0845 070 2807
Back to previous page
Submit your press release