Three-quarters of businesses want to see energy security made a top priority, CBI poll reveals

The CBI surveyed 575 businesses and 2,338 homeowners to gauge perspectives towards the energy sector. The survey findings are being released today as the CBI sets out to warn politicians that short-term thinking on energy risks damaging investment.

“One careless comment or populist proposal – whether we’re talking about cutting support for onshore wind farms or freezing energy prices – can make businesses feel like they’re right back at square one,” CBI deputy director-general Katja Hall will say at the CBI Energy Conference in London today.

“For investors, this is a real worry. And when that investment can go anywhere in the world, it should be a real worry for politicians too.”

Energy efficiency: “critical investment”

The poll found that 38 per cent of businesses and 35 per cent of consumers believed energy efficiency as the best solution to ensuring affordable energy costs.

“Energy efficiency has for too long been the poor relation in this debate. We need investment in supply but this must be combined with a renewed push to cut our energy usage,” said Hall. “Energy efficiency needs to move up the rankings and be seen as a critical investment.”

Carbon emissions: misunderstood

According to the poll, both businesses and consumers support the UK’s aim to tackle climate change, with 70 per cent and 76 per cent respectively voting it as an important issue. There seems to be a disparity, however, between this figure and that of the amount of business leaders and households who believe taking action now to cut carbon emissions will deliver long-term economic opportunity. A third of businesses disagreed with the statement and just below a quarter of consumers were unsure.

“People don’t necessarily get how our energy objectives relate to each other, let alone how they relate to the bills they pay each quarter, leading to a lot of misunderstanding and mistrust,” said Hall.

Energy company profits

The CBI pointed to energy company profits as an area where there appeared to be misunderstanding with 53 per cent of businesses and 61 per cent of consumers surveyed believing energy company profits to be the main reason for rising bills. Yet CBI states that profits accounted for only 4.3 per cent of an average bill in 2012.

“With profits very much under the spotlight, it’s important to remember that companies need to make a fair return in order to make the investments we so desperately need,” said Hall. “But it’s right to demonstrate to consumers that there is nothing to hide.”

Energy Secretary, Ed Davey, and Shadow Energy Secretary, Caroline Flint, will also speak at today’s conference.