The lights must not go out on the West Midlands, the Institute
of Directors warns.
If they did, manufacturing industry would be decimated, with the
region's vulnerable economy hard hit.
Energy security had to be at the top of the agenda for whoever
won the upcoming General Election, insisted chairman Richard
Boot.
An IoD national survey published today (WED MAR 31) found that
85 per cent of business leaders supported new nuclear power
stations.
In its response to regulator OFGEM's document Project Discovery:
Options for delivering secure and sustainable energy supplies, the
IoD said UK energy policy "had not been sufficiently focussed on
mitigating the very serious risk of power cuts in the middle of
this decade".
Business leaders were deeply concerned.
The survey of 1,800 IoD members found that ensuring secure
energy supplies was the single most important issue a new
Government should address over the course of the next full
Parliament.
It stated: "The proliferation of Government support mechanisms
and policy instruments to encourage renewable energy, and
indecision about the role of nuclear power, have sent mixed signals
to investors and have not encouraged private investment in new
capacity.
"Government indecision, flaws in the strategic planning system
and the persistent threat of windfall taxes on the profits of
energy companies have been extremely unhelpful.
"The degree of support for new nuclear power stations in the
business community is startling."
Further possible solutions could include:
Replacement of the Renewables Obligation by setting a carbon
price which allowed the market to determine the appropriate mix of
low-carbon capacity, including nuclear.
Incentivising companies to invest in back-up storage and
generation for the ongoing wind power push, so there is enough
cover for when the wind doesn't blow.
Retention of the Infrastructure Planning Commission in order
that strategic energy projects of national importance, such as
nuclear power, are fast tracked.
A new push to open up Europe's energy markets.
Mr Boot added: "The UK has been left exposed to power
shortages.
"The message from business leaders to the next Government is
unambiguous: deal with the energy security problem and start
dealing with it now. If this results in speeding up the planning
process and a large building programme of new nuclear power
stations, so be it. The UK can't afford blackouts."
West Midlands manufacturers had to have reasonably priced energy
and security of supply or they would lose out to competitors.