T-Systems report finds energy shortage and sharp fuel price rises are biggest worries for UK executives over the next five years

Senior UK executives are concerned that Britain is hurtling towards energy demand outstripping supply, according to findings of a new survey published today by T-Systems. The research, carried out in co-operation with the Economist Intelligence Unit, reveals that over 80% of directors and other senior executives from large organisations fear sharp energy price rises, and nearly 50% expect electricity shortages over the next five years.

Regardless of the current debate around the financial crisis, weak recovery and likely cuts to the UK’s transport infrastructure projects, 52% of the business leaders surveyed warned that to ensure Britain’s competitiveness, the single aspect of the economy that the new government needs to prioritise is securing its energy supply.

“The research highlights that energy is now a major business risk for UK businesses. In the near future, access to energy and its careful management will be as critical to business success as, for instance, access to capital and management of capital is today. This is a board level issue.” said Sam Kingston, the managing director of T-Systems in the UK.

“Close collaboration between large energy users and energy providers will be key not simply in reducing energy consumption but in establishing a sustainable pattern of demand and supply for the future. Smart energy strategies at individual businesses as well as at the national level will need to be supported by advanced technologies that will ensure transparency of usage across the supply chain.”

Among the report’s other findings:

• Micro-generation is becoming increasingly attractive, whether based on solar, wind, heat pumps or other technologies. Although only 13% currently have such equipment, 42% already have plans to implement a micro-generation scheme.

• Nearly three-quarters (73%) of respondents believe that nuclear energy will have to be the primary solution to the UK’s energy needs in the medium term.

• 90% of respondents already have a concrete energy efficiency goal for the year ahead, with most planning cuts of up to 10%.

• Nearly all (91%) executives polled agree that electricity suppliers should be required to promote energy use reduction through efficiency schemes.

Question: What are the key drivers for energy efficiency initiatives, if any, within your organisation?

Select up to three.

 

Question: Which of the following aspects of the UK’s business environment should the new government most prioritise to ensure a competitive British economy? Select up to two.

Question: Which of the following energy sources do you believe the UK government should prioritise over the next two years to ensure a secure and cost competitive UK energy supply over the coming decades? (Respondents could select up to two).

 

Drawing on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public-sector institutions. Building on this foundation, Deutsche Telekom’s corporate customers arm offers integrated solutions for the networked future of business and society. Some 45,300 employees at T-Systems combine industry expertise and ICT innovations to add significant value to customers’ core business all over the world. The corporate customers unit generated revenue of around EUR 8.8 billion in the 2009 financial year.

The Economist Intelligence Unit is the business information arm of The Economist Group, publisher of The Economist. Through our global network of over 650 analysts, we continuously assess and forecast political, economic and business conditions in 200 countries. As the world's leading provider of country intelligence, we help executives make better business decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies.

Putting the brakes on power consumption is a T-Systems report on energy and efficiency, written in co-operation with the Economist Intelligence Unit. Based on a survey of over 200 businesses conducting during April and May 2010, it explores views on the UK's energy outlook and energy efficiency efforts within industry today.

A total of 211 senior executives were surveyed, representing a wide range of industries and local government. All respondents had influence over energy policy where they worked. They are also at a senior level, with 49% hailing from the C-suite. One-half of participants come from companies with annual revenue of over £500m. A range of industries were polled, as well as local government. To complement the survey, the Economist Intelligence Unit also conducted a series of in-depth interviews with corporate and public sector leaders across Britain.