BREXIT HITS ENERGY EFFICIENCY INVESTMENT - INDUSTRY CALLS FOR GOVERNMENT ACTION

13 September 2016, London - The latest issue of the UK Energy Efficiency Trends report (Volume 16) shows that energy efficiency suppliers are already feeling the effects of the Brexit decision. And while energy efficiency consumers are yet to experience a material downturn, most consider it to be a matter of time before prices rise and investment slows.

More than half of suppliers (56%) considered that the decision to leave the EU had already negatively impacted their business, with only 35% reporting ‘business as usual' following the referendum result.

By contrast, 73% of consumers said that it remained ‘business as usual' following the referendum, although 25% reported either a minor or major impact on their energy saving investment plans.

Over the next 12 months, half of all supplier respondents said the UK exit would lead to reduced levels of customer demand, with 29% also expecting their overheads to rise, and 29% expecting cuts to their own business investment. Their consumer counterparts were anticipating a rise in costs, with 55% expecting an increase in energy prices and 32% expecting higher energy efficiency technology costs.

In negotiating the UK exit from the EU, six out of every 10 suppliers considered that energy-related regulations should be retained in full, with 35% preferring some revision and scaling back. Only 3% of suppliers consider that EU-derived regulation should be entirely removed from the UK statute book. When asked the same question, only 6% of consumers felt that EU policy & regulation (as it relates to energy efficiency) should be removed entirely; 55% considered it should be revised and scaled back; 39% that it should be retained as it is.

When asked what needed to happen in the wake of the Brexit decision, consumers responded with a call for government to take action to reduce economic uncertainty, to focus on UK energy security and driving energy efficiency.

Read the full report here:http://www.energyefficiencytrends.co.uk

Commenting on the findings, Ian Jeffries, Director at EEVS, said:

"Last quarter's survey results were clear on the Brexit issue; respondents felt strongly that the energy efficiency sector would be best served if the UK remained in the EU. With the UK electorate having taken the contrary view, we're now seeing what that means for our sector, in the short term at least.

"Perhaps unsurprisingly, respondents were uncertain about what the real, longer-term outcome would be. But one thing that they are clear about is that in the short term it looks pretty bleak, with many expressing concern around how it will impact energy saving activities and investments, whether it be a cooling off of customer demand for suppliers, or higher technology and installation costs for consumers.

"The sector-wide outlook has certainly dampened, with confidence falling on both sides. The industry-wide view is clear; political and economic certainty - and business confidence - must be restored quickly to reverse the downturn that is broadly anticipated over the coming months."

About the report

Compiled from the results of a confidential, quarterly consumer and supplier survey, the UK Energy Efficiency Trends Report evidences industry trends and has become one of the sector's leading sources of market intelligence.

The report is delivered by a research partnership between EEVS and Bloomberg New Energy Finance, and is supported by Bird & Bird, Bellrock and Minimise Energy.

Download the full report here:http://www.energyefficiencytrends.co.uk

Call for new respondents

New respondents are always needed to complete the survey. The ideal respondents fall into two categories:

• Directors within energy efficiency supply, consultancy and finance organisations

• Those responsible for reducing energy consumption within their own organisations

There is no restriction on size of organisation. Those interested in taking part in the next survey can register using this link: http://www.energyefficiencytrends.co.uk

ENDS

Contact
To find out more, please visit www.energyefficiencytrends.co.uk or follow the EEVS team on Twitter @EEVSInsight. Alternatively, please contact Adrienne Robins at Green Tiger Communications: Tel: 07855 643094. Email: adrienne@greentigercommunications.co.uk

Editors' Notes
The Energy Efficiency Trends Survey (Vol.16) was conducted between 11 July and 12 August 2016 and completed by 89 UK-based respondents.

The insight it provides is helping to transform levels of transparency and understanding within the sector - as well as supporting better, faster, more confident decision making in relation to commercial energy saving investments.

The analysis is produced quarterly, based on survey feedback from a wide range of commercial consumers and suppliers of energy efficiency.

The survey is delivered by EEVS and Bloomberg New Energy Finance and is supported by:

• Bird & Bird - international law firm with a specialism in the energy and utilities sector

• Bellrock - providing property and facilities management services to over 40,000 retail, commercial and public sector properties throughout the UK

• Minimise Energy - providing clients with the manufacture, supply and installation of innovative energy efficiency technologies

EEVS is a leading global provider of performance assurance, analysis and information in relation to energy efficiency. This includes working with clients to devise and develop: performance management systems and strategies; procurement policies and tender evaluations; due diligence on performance contracts and guarantees; performance and financial risk analysis. Alongside this, an established team of energy analysts provides high quality, independent Measurement and Verification (M&V) services for all sizes and types of energy saving project. Since 2011 this team has evaluated the savings performance of hundreds of energy efficiency projects to the global good practice standard, IPMVP. www.eevs.co.uk

Bloomberg New Energy Finance is the definitive source of insight, data and news on the transformation of the energy sector. BNEF has a staff of more than 200 based in key finance centres worldwide including London, New York, Beijing, New Delhi, São Paulo and Tokyo. www.about.bnef.com