BFBEnergyPaper

Figure 23: Performance of EU utilities share prices (Euro Stoxx) against other shareprices (Stoxx 600) 143There has also been a notable lack of investment in the EU’s energy sphere over the last fewyears. An FDI Intelligence report recently warned that, across the EU, “capital investment inthe coal, oil and natural gas sector fell by 36 per cent.” 144 This is in spite of the urgent needfor investment. The UK Government stated that the UK electricity sector will require around£110 billion of investment over the next decade to improve its infrastructure. 145 It seemsclear that, at the very least, Britain would be lucky to get the investment that it needs just tomaintain and repair its existing energy infrastructure.In addition to the evidence provided above, there has also been an increasing number offirms who are not classed as “energy intensive” who have stated that they will have to movesomewhere where there are low energy prices. As noted above BMW recently decided tobuild their energy intensive plant in the United States. Joerg Pohlman, managing directorof the venture, has gone on record stating: “The main reason for wanting to be based therewas to secure an adequate supply of energy from renewable sources. But another decisivefactor was the low energy price.” 146Energy Policyand the EU143 House of Lords European Union Sub Committee, No country is an energy island: securing investment for the EU’sfuture, p.37, 2 May 2013,found at 144 FDI Intelligence, “UK tops European inward and outward FDI tables”, found at 145 House of Lords European Union Sub Committee, No country is an energy island: securing investment for the EU’s future, p.9, 2May 2013, found at 146 C. Bryant, “High European energy prices drive BMW to US”, Financial Times, 27 May 2013, found at 42