DECC reveals decline in energy production and consumption

Published:  29 July, 2010

The UK has seen a 6% decrease in energy production and a 6% drop in consumption, according to a report by the Department of Energy & Climate Change.

DECC based its findings on comparisons to 2008 figures and believes them to be due to the recession.

It found that overall, primary fuel consumption was not met by "indigenous production", adding: "This continues the trend from 2004 when the UK again became the net importer of fuel, [importing] more coal, manufactured fuels, crude oil, electricity and gas than it exported."

The Secretary of State for Energy & Climate Change, Chris Huhne, said: "As UK oil and gas production decline, this leaves us more exposed to volatile prices."

He added: "The cheapest way of closing the gap between energy demand and supply is to cut energy use. We need to address the state of our buildings – we have some of the oldest housing stock in Europe. Our green deal will transform finance for improving the energy-efficiency of Britain's homes."

Huhne also confirmed that the government plans to review the logistics of the Renewable Heat Incentive in due course. "In the heating sector, I can confirm our strong commitment to action on renewable heat," he said. "The government [is] considering responses to the Renewable Heat Incentive consultation and will set out detailed options following the spending review."

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