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19 Apr 2011 04:04:51

EMR could affect UK's competitiveness

Businesses are concerned about the EMR impact, with 57% organisations believing that it will lead to an increase in energy bills.

New research by npower shows businesses are concerned about the impact that the UK Electricity Market Reform (EMR) could have on the UK's competitiveness in the global marketplace. At an event held by the energy firm, companies said that the focus of the EMR should be on refining current energy policy, not reforming it.

The survey, released to mark the end of the EMR consultation process, revealed that 55% of businesses fear the proposals will lead to higher energy bills, while 47% think they will be complex and unwieldy. The research was carried out in March among 80 professionals responsible for energy management in their organisations.

The proposed carbon floor price caused the main concern, with 57% of organisations believing that it will lead to an increase in energy bills for businesses. With companies already subject to 'carbon taxes', there is some worry that the EMR, being too nationally focused, will have a negative impact on the competitiveness of UK companies in the global market place.

David Cockshott, director of industrial and commercial markets at npower, said: "It is clear that businesses report real concerns regarding the proposals in the EMR, particularly while the UK economy is fragile, and it is important that the impact the reform strives to achieve is incentivised to ensure businesses can see the benefits of the proposals." He also added that it is important that this is considered seriously to get the support of major energy users.

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