A pound invested in the power and gas sector has a larger indirect effect on the rest of the economy than a pound invested in most other sectors.
Powering the UK:
The role of the power and gas sector in the wider economy
The direct benefit of the power and gas sector to the UK economy, in terms of Gross Value Added1 (GVA) was around £28 billion in 2010 — 2.4% of UK total GVA.
When we include the indirect benefits, through increased activity along its supply chains, such as construction, engineering and out-sourced activities, this contribution jumps to £92 billion, around 8% of the UK total. Its indirect effects are some of the largest of the main UK economic sectors — a pound invested in the power and gas sector has a larger indirect effect on the rest of the economy than a pound invested in most other sectors.
1 One way to measure the size of a company, industry, or economy is to determine its output or turnover. The Gross Value Added or GVA generated by all the industries in all sectors of an economy adds up to that country’s GDP (Gross Domestic Product). Both GVA and GDP are used as indicators of the economic wealth of an area (country, region, city, etc.) based on the value of products and services and income generated by businesses.
2 ONS, Workplace based GVA
3 EY Analysis based in ONS, Input-Output tables, 2008