Planning delays 'put UK energy supplies at risk'

The future of Britain's energy provision is at risk because the UK's cumbersome planning system is blocking the building of vital new gas storage facilities, says the Confederation of British Industry.
The alarm has been raised by the CBI as part of its submission to the Government Energy Review to be published tomorrow.

CBI director-general Digby Jones warned last autumn that the UK had only 11 days of energy supply set aside - significantly below recommended levels. Jones said Britain's competitors on mainland Europe had set aside 55 days of supply. His outburst at the Labour party conference was considered alarmist by government ministers. But events, said Jones, proved him correct.

This weekend, Jones said 80 per cent of the UK's new gas storage is mired in the planning process. Even if all the facilities proposed were approved, Britain would only have storage capacity equal to 9 per cent of total demand - half that of Germany, France and Italy.

'This is a dreadful condemnation of the UK planning system. Ministers are saying "we're sorting this out". If that's the case, how come 80 per cent is stuck in the planning system?' Jones asked.

A senior Whitehall source said: 'Energy security and supply is one of the most vital issues we have to face and this government is doing everything it can to see our needs our met.'

But energy supplies ran perilously low last winter and the CBI is warning that supply will remain 'tight' this year. The UK is now a net importer of gas, having been a net exporter for more than two decades thanks to North Sea supply, which is now past its peak. The UK moved to being an importer sooner than had been expected, and key import infrastructure projects, including pipelines to Norway and Holland, along with terminals to land liquefied natural gas, are not due for completion until later this year and next.

Shortages were exacerbated by political tensions between Russia and the Ukraine, which saw a temporary cut-off of gas. Energy security is being considered as part of the Government Energy Review.

Jones gave a clear indication that the CBI backs a new generation of nuclear reactors but warned that any investments must not replace money spent on renewable energy. 'Sustainable energy has to be part of the solution. The money put into nuclear has to be put into renewables as well - not instead of.'

Jones, who leaves the CBI in June to be replaced by former Financial Times editor Richard Lambert, is in Japan meeting Honda and Nissan executives before flying on to China. Jones is hoping to help win new orders for UK business.