Energy red tape must be scrapped or simplified, says npower 17 October 2011

Current UK energy regulations will not raise the investment needed to ensure the country's low carbon future, according to npower, which is calling on government to either simplify or scrap some legislation.

Wayne Mitchell, interim industrial and commercial markets director at npower, explains that the organisation surveyed npower business energy users. It found that one in three (32%) do not believe the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), Climate Change Levy (CCL) and Climate Change Agreements (CCAs), the Renewables Obligation and Feed In Tariffs will help.

Against a backdrop of political debate on how to best regulate the energy industry, npower asked businesses which energy legislation they would keep, which they would like to see simplified and those they would like to see scrapped completely.

Perhaps unsurprisingly, the CRC received most attention, with more than two thirds (69%) wanting to see the scheme simplified, and more than half (57%) believing it should be scrapped. Over a third (38%) would like to see it merged with existing regulation.

There was also a call to scrap the Renewables Obligation among some businesses (41%), with nearly half (47%) calling for it, too, to be simplified. Meanwhile, opinion was split on CCL and CCAs, with 29% wanting to see them scrapped, and 32% believing they should stay.

"Energy policy ultimately drives British business but, as the government recognises through its Red Tape Challenge initiative, there is a mammoth amount of legislative cost burden on British businesses," comments Mitchell.

"At the moment, the energy market is neither fully regulated, nor fully liberalised and this in-between situation is leaving businesses and investors in limbo, unable to make an informed decision," he continues.

"That is why we again urge the business community to make sure their voices are heard. This is a unique opportunity on an unprecedented scale to have a say on energy legislation."

Mitchell explains that npower's 'Red Tape Challenge – Have Your Say' campaign was launched in response to the government's own Red Tape Challenge and after npower's own research revealed strong business opinion on current and proposed energy legislation.

Brian Tinham

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