As UK Energy Secretary Ed Davey arrives in Edinburgh today (Wednesday), the SNP is highlighting a new report which finds that UK energy policy uncertainty has driven the UK to the top of table for political risk on energy.
The Exane BNP Paribas report finds that the political risks associated with UK energy policy have grown considerably in less than a year – with the UK now perceived to be the country with the greatest political risk in the European energy sector.
The report highlights major concerns from investors about UK policy and Labour energy policy – with 68 per cent of respondents believing that Labour’s energy policy would deter energy investment. This would be a major concern given the already tight gap between electricity supply and demand.
Concerns have already been raised about the UK Government’s failure to provide security of energy supply – with a Scottish Government report published this week highlighting the increased potential for energy blackouts and higher consumer bills if the situation is not rectified.
Commenting, SNP MSP Mike Mackenzie said:
“OFGEM has warned that the UK’s energy gap could shrink to as low as two per cent in 2015/16 – leading to a higher risk of energy blackouts and higher bills.
“Under the current government the UK is perceived as the most risky place in Europe to invest in energy. Given the mismanagement of the Electricity Market Reform process, the infighting between the coalition parties on renewables and nuclear, and the Tories wanting to abolish onshore wind this is perhaps no huge surprise.
“With the report saying more than two thirds of respondents believe that Labour’s energy plans would deter investment even further, it’s clear that whoever is in charge in London investors have concerns.
“A Yes vote will allow us to take action to prioritise investment and support for our renewable energy industry – keeping the lights on and keeping bills down.”
