Survey says: UK energy efficiency investments could plummet

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While over half of the UK's top 250 companies have invested in building improvements for increased energy efficiency, new research from Ernst & Young says four out of five of those companies are now worried about when they'll see a return from those investments. In a nutshell, the company says energy efficiency spending could stop cold.

According to an article in the UK's H&V News magazine, 53% of the companies surveyed by Ernst & Young had raised their energy efficiency, but only 9% have immediate plans to do the same. It's a combination of issues, the article notes: upfront costs in addition to worries about return on investments.

And those survey numbers led the company to issue a warning that energy efficiency investments could "grind to a halt," the article said. That may come as a big surprise for readers who have been following the glowing reports from the energy efficiency scene over the past year or two.

The results also indicated that microgeneration wasn't a terribly popular route either. A third of the companies surveyed said they simply hadn't considered it, and 39% said costs were the obstacle.

Most survey participants expect significant increases in energy costs, and 91% indicated that would push them toward finding ways to cut consumption.

Ernst & Young Power & Utilities advisory partner Richard Postance, quoted in the H&V article, said "With the grid under increasing pressure, the government needs to give businesses certainty that investing in higher-cost measures will be worthwhile.

"Developments such as the smart grid represent a huge opportunity for businesses to take advantage of the move toward a lower-carbon economy, but too few understand what it could mean for them." He added that without a clear understanding of how improving the country's energy infrastructure will bring a return on investment, business will "lack the confidence and security to take the next step on reducing their energy costs."

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