Business welcomes N-power plans

More nuclear power stations look set to get the go-ahead

Business leaders have welcomed the government's go ahead for a new generation of nuclear power stations.

The Confederation of British Industry (CBI) said plans to include nuclear energy sources had been "correct".

Meanwhile, the Engineering Employers Federation (EEF) applauded the government for its balanced strategy and for "grasping the nuclear nettle".

The government plans to use a variety of measures to cut the UK's dependence on imports and tackle climate change.

The groups also welcomed moves to ease tough regulations on planning permission saying the move would encourage increased investment in the energy sector.

Streamlined planning

The Government should be applauded for setting out a balanced strategy and grasping the nuclear nettle Martin Temple, EEF

"Ministers are correct to include both nuclear and renewable power in their thinking," CBI chief Richard Lambert said.

"Streamlining the planning process for new power infrastructure and establishing a long-term pricing mechanism for carbon will help give business confidence to invest in both.

"A level playing field for all forms of energy provision will allow the market to deliver more secure, cleaner and affordable electricity.

The Engineering Employers director general Martin Temple added: "The Government should be applauded for setting out a balanced strategy and grasping the nuclear nettle."

Concerns remain

However, some quarters did warn that the Energy Review's proposals failed to go far enough.

British Energy chief executive Bill Coley added that the announcement had put to rest some concerns over the planning process for the industry.

But Mr Coley did add that the proposals did not go far enough.

"I think what you have to have is further definition of how the process is going to work - a better planning process that gives certainty."

While welcoming the plans, the EEF warned that urgent action is needed now to develop storage facilities in the UK.

Research from the National Grid released ahead of the review showed gas supplies could be even tighter this winter as import facilities remain unfinished and information on supply and demand from the continent remain unclear.

Last winter, household bills soared as suppliers brought in inflation busting tariff increases in the face of surging wholesale prices.

The EEF also urged the government to deal with the UK's "woeful" levels of research and development investment, which remain lower than levels in the US and all but one member of the European Union.

Efficiency call

Meanwhile, British Gas said the government should concentrate its efforts on promoting energy efficiency, adding that nine million homes are wasting £1 in every £3 of their energy usage.

"The challenge is to prompt these householders to take action," British Gas managing director Mark Clare said.

"British Gas has proved that financial incentives work ... yet the Government has failed to grasp this opportunity to put forward some seriously eye-catching incentives - such as stamp duty rebates."

The Royal Institute of Chartered Surveyors (RICS) added that the plans were a "failed opportunity" to challenge the fundamental issues of sustainability and how we all live and work.