Power management company Eaton criticises lack of energy-efficiency measures in 2016 Budget
The 2016 Budget didn’t do enough to encourage manufacturers to invest in more energy-efficient technologies, power management company Eaton has said.
With the UK facing an estimated 40-55% electricity supply gap as a result of ageing coal-fired power stations coming offline, Eaton had hoped the Chancellor would use the Budget as an opportunity to encourage industry to reduce its energy use. It had specifically called for an extension to the existing Enhanced Capital Allowance scheme that allows companies to offset the cost of new energy-efficient machinery and equipment.
But a lack of focus on energy-efficiency in the Budget represented a missed opportunity, said Jonathan Hart, a senior manager at Eaton. “A recent report by the Institution of Mechanical Engineers warned that the government’s policy to close all coal-fired power stations by 2025 and growing electricity demand will leave the UK facing a 40-55% electricity supply gap. The Budget was, therefore, a golden opportunity to encourage companies to think about their energy use and to invest in more efficient equipment.
