Powering the UK 2012

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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 EY 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.


2011 saw another significant increase in capital investment in the Power and Gas sector to over £10bn.


Between 2007 and 2011 £43bn was invested in the Power and Gas sector.


Direct employment grew from 83,000 to 137,000 between 2008 and 2011, with growth of 6% between 2010 and 2011.


The sector's total direct contribution to the UK economy in 2011 was £20.6bn.



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