The private sector put enough cash into the UK to build the Olympic stadium 20 times in 2012, according to a new report prepared by EY for trade body Energy UK.
The ‘Powering the UK 2013’ report released today found £1.6billion more was invested in the UK energy sector last year than in 2011, rising to a total of £11.6bn.
It suggests investment in the UK’s energy sector in 2012 was higher than the private sector’s investment in transport and the public sector’s investment in health and education.
The energy sector’s central role in the UK economy is clear from some of the figures dug out by analysts: in total the sector supported one in 45 jobs or 664,000 jobs last year, contributed around 3% of UK GDP and directly contributed £24bn to the economy.
Tax-wise the sector paid £3bn on top of business rates, the climate change levy, the renewable obligation and the carbon price floor.
Tony Ward, Head of Power & Utilities at EY said: “What our research shows is that the UK energy sector has, in recent years, consistently delivered higher levels of both investment and employment across the country.”
Despite “slow progress” on reforming energy policy, investment levels “haven’t lost momentum” in 2012, added Mr Ward.
But he warned the debate around energy has become “skewed and politicised”.
Mr Ward said: “More needs to be done to secure the UK’s future energy supplies and to achieve a successful transition to a low carbon economy. To continue delivering the quiet energy revolution that has already been taking place, certainty, stability and trust at a customer level are all necessary.”