Report claims energy system failings holding back job hopes

Dec 7 2009 by Adrian Pearson, The Journal

The chamber said capacity on the National Grid must be improved, and questioned the pricing structure charged for energy supplies looking to access the grid.

Charges for companies feeding into the grid in Northumberland are more than £11 per kilowatt, versus Southern charges of less than £1 on overage.

A spokesman for the National Grid said the cost was based on transporting energy from where it is generated – mostly in the North – to where it is used, mainly the South, and pointed to cheaper electricity bills in this region which offset the costs.

Ofgem is currently consulting on the future of the electricity grid, a move one European MP has said is “vitally needed”.

Fiona Hall, a Liberal Democrat MEP, has helped push forward European efforts to create an offshore revolution.

She said: “The chamber is absolutely right. I have met with European managers looking into this and they are already preparing to knock heads together to ensure these efforts are not wasted.

“The simple truth is if we do not make these changes our efforts to tackle climate change will come to nothing.”

As well as changes to the grid there are also calls for changes to the gas distribution system and more efforts to use waste heat from industry to power homes.

An energy policy working group set up by the chamber came up with six key areas for businesses and the Government to address.

They include changes to the planning and regulation system, as well as well as more skills training and cash for new energy research.

Last night a spokesman for One North East said: “Regional discussions on future energy demands are ongoing as we feed into national consultations about the future of the National Grid.

“This will also need to consider planned developments in the North East in offshore wind, biomass, nuclear and clean coal power generation, along with community micro-generation projects and the needs of emerging industries like electric vehicles.

“Moving forward this will be an increasingly important issue for North East businesses, and a sustainable and reliable low carbon energy supply will be essential to the region’s economic prosperity.”

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