Written Evidence from CBI Cymru/Wales
CBI Wales is pleased to respond to the Welsh
Affairs Committee Inquiry into Energy in Wales.
Energy supply is of critical importance to business
in Wales, and the CBI is lobbying extensively on this issue at
a Wales, UK and European level.
The key energy issues are security of supply,
competitive costs as well as meeting the UK's climate change commitments.
Recent increases in energy costs in the UK have put significant
pressure on business, especially manufacturers, at a time when
other costs of production have also risen, giving rise to fears
about the long-term viability of such companies in Wales.
A secure and competitive energy supply is of
particular importance to the Welsh economy, given the over-representation
of manufacturing and especially heavy manufacturing, in our economic
mix, compared to the overall UK economy. High and unpredictable
energy costs, and doubts about supply capacity will make re-investment
in Wales less attractive for energy-intensive companies, many
of which also have operations in other countries, putting the
Welsh operation in competition with those.
The CBI has produced several papers on the issue
of Energy Policy in the UK, all of which have been formulated
after extensive consultation with our members, and we would like
these to be considered by the Committee as part of their Inquiry.
1. The CBI's Energy Brief: "Powering
the Future: Enabling the UK Energy Market to Deliver".
2. The CBI Wales response to the Welsh Assembly
Government Consultation: "Energy Wales: Route Map to a Clean,
Low Carbon and More Competitive Energy Future for Wales".
7 December 2005