Supplier Reaction to the Government Energy Review

Table of Contents

• CATALYST
• SUMMARY
• METHODOLOGY
• ANALYSIS
  • Nuclear is perceived to be the long-term solution to carbon abatement
    • With nuclear builds a distant ambition, stakeholders favour the immediate emission reductions provided by increased efficiency
    • Longer-term, however, new nuclear builds are viewed to be the UK' s most effective option for reducing carbon emissions
    • Utilities are the greatest proponents of a nuclear power driven reduction in UK carbon emissions
  • New nuclear plant will not be built without the state' s assistance
    • Stakeholders favour state support for nuclear builds, particularly towards clean up costs, but direct intervention is not desirable
    • Regulators are keen to be involved in creating an environment in which new nuclear power stations can be built without subsidy
  • A rise in carbon prices is expected, but ETS question marks remain
    • Stakeholders expect the price of carbon to rise, but are sceptical that the collective political will exists to make the ETS a success
    • Regulators are bullish on the need for a uniform ETS allocation process to ensure the UK is not disproportionately penalised
    • With concerns surrounding supply security still paramount, carbon remains low on the agenda for major energy users
  • The Energy Review failed to set a clear policy framework agenda
    • Stakeholders who have engaged the Review report are generally less positive towards the UK' s short-term drive to curb emissions
    • Longer-term support for new nuclear builds has not received a notable fillip from the release of the Energy Review report
    • Utilities perceive the Energy Review report to lack the sufficient substance to drive future investment decisions
• APPENDIX
  • Extended methodology
  • Ask the analyst
  • List of Figures
    • Figure 1: How should the UK tackle carbon emission reduction in the short-term?
    • Figure 2: How should the UK tackle carbon emission reduction in the long-term?
    • Figure 3: Differing long-term perceptions toward UK carbon emissions reduction, by stakeholder
    • Figure 4: How involved should the Government be in new nuclear builds?
    • Figure 5: How involved should the Government be in new nuclear builds? (by stakeholder)
    • Figure 6: Attitudes toward Europe' s Emissions Trading Scheme
    • Figure 7: Attitudes toward Europe' s Emissions Trading Scheme (by stakeholder)
    • Figure 8: What do you believe to be the greatest challenge facing the UK energy sector? (by stakeholder)
    • Figure 9: The differing short-term perceptions of those who have and have not engaged the Energy Review
    • Figure 10: The differing long-term perceptions of those who have and have not engaged the Energy Review
    • Figure 11: Survey stakeholder groups