A stark warning about the rising potential for power blackouts has been issued by a body representing major business users at a conference in Bradford today.

A new survey by the Major Energy Users’ Council and Power Efficiency, an energy solutions company and part of the Balfour Beatty Group, warns that 88 per cent of UK businesses are worried about the security of their energy supply.

This follows warnings by energy regulator Ofgem that the UK generating capacity is nearly at full stretch.

With the planned closure of some coal and nuclear power stations, Ofgem is warning that spare capacity could fall from the present 14 per cent to just four per cent in three years, with a risk of ‘brownouts’ and ‘blackouts’ starting in the winter of 2015-16.

It is one of the key findings of the survey published to coincide with the MEUC regional conference at the Cedar Court Hotel.

The report – ‘Powercut Britain – Are the lights going out for UK business?’ – is based on feedback over the summer from 129 UK commercial and public sector energy users whose annual energy spend is around £1 billion.

The survey also found that 60 per cent of companies are initiating ‘behavioural change programmes’ to cut energy use, while around half are investing in renewable energy with 43 per cent installing their own generation systems to protect security of supply.

More than a third of companies said the Carbon Price Floor, introduced this year at £16 per tonne of carbon emissions, is a cost which will need to be passed on to customers.

More than 90 per cent of UK businesses think that energy inflation poses a major threat to UK competitiveness but 33 per cent do not yet have a clearly defined energy and carbon reduction strategy in place. Nearly two thirds of respondents say they have plans in place to make a substantial investment in energy efficiency.

MEUC chairman Andrew Bainbridge said: “It is clear that big businesses are becoming increasingly alarmed by the energy perils they face and understand they must stiffen their resolve to actively manage and reduce their costs.”

Andy Wild, managing director at Power Efficiency, said: “This report highlights the complex issues facing business in the UK today and underlines why we believe the issue of energy management is moving ‘out of the plant room and into the boardroom’.

“It provides a compelling insight into why managing energy costs and securing security of supply will dominate the agenda of UK businesses.”

The Bradford conference is an annual event for major energy users across the North of England and is one of three MEUC regional events.