Select Committee on Welsh Affairs Written Evidence

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. These include:

    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

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