Industry and climate change organisations have criticised government plans on reducing emissions as ‘too vague’, according to analysis from Alva, the corporate reputation analysis company. July’s review of traditional and social media also identified that future private sector investment in the programme is dependent on Ministers developing a more rigorous policy framework. “Despite the positive step taken by the government in launching its first annual energy review, the practical questions surrounding how the Government intends to deploy financial support for renewable energy have not been fully answered”, said Alva’s CEO, Alberto Lopez-Valenzuela.
“Our research also shows that the Government has to balance the need to attract private finance to invest in the UK energy market whilst at the same time ensuring that consumers don’t see further radical increases in their energy bills at a time of economic austerity.” Carbon emissions were also high on the issues agenda following the Department of Energy and Climate Change’s £34m cut on low carbon and renewable energy initiatives, prompting alarm from the Committee on Climate Change and environmental NGOs.
At a domestic level, energy prices were also in the spotlight following British Gas’ announcement of a doubling of profits, but warning of imminent price increases due to the rising cost of wholesale gas. This follows on from EDF and Ovo Energy’s decision to remove their cheapest tariffs and indicates an upward pricing trend in the industry. Ofgem’s report showing 20% of UK households are in debt to energy suppliers raises the spectre of fuel poverty once more and this looks set to be the dominant reputational risk issue for energy companies in the coming months.
“Austerity measures are going to continue to impact all areas of government financing and, as we have seen with the closure of the Sustainable Development Committee, renewable energy is no exception,” Lopez-Valenzuela added. “What has become clear is that budget cuts are going to have a lasting effect on the shift to a low carbon economy, with the onus on companies to deliver results with less government subsidy.”
For further information please contact Alastair Pickering at 020 3176 7855,[email protected], or visit www.alva-group.com
