Powering the UK 2012
Powering the UK
“The energy sector has a critical role to play in boosting economic growth up and down the country. Those working in the sector know this, but the key facts don’t always reach the wider audience. That’s why Energy UK commissioned Ernst & Young to write this report, to provide a broad perspective on energy issues in the UK that is not often heard”.
Angela Knight CBE, Chief Executive, Energy UK
Investing for the future of the Energy Sector in the UK
At a time when recession investment in the UK has seen a decline, 2011 saw a significant increase in investment in the power and gas sector to more than £10bn, accelerating the trend of the past five years.
- The investment surge is mirrored by a positive trend in employment levels in the sector and its supply chains, helping make it one of the past five years’ best performers.
- This highlights the critical role the Energy sector could play in the UK’s economic recovery, and the need to maintain policy momentum in order to provide a robust context for even greater investment decisions.
A consistent contribution to the economy
The sector’s total direct and indirect impact on the UK economy in 2011 was approximately £86bn. This is closely related to its aggregate turnover level and is based on the value of products and services generated.
The industry has seen margins and revenues under pressure reflecting both competition and reduced input costs for fuel. Nevertheless it contributes 2.8% of total UK turnover, and continues to increase its rate of capital investment and job creation.