100% of poll respondents don't believe Mr Davey and the CCC

Peter Atherton of investment bank Liberum Capital reports the result of a light hearted survey of investors.

...we decided to carry out a pop quiz asking investors to vote on which of the propositions below seemed the more credible:

• A. Liberum Capital / RWE: £150bn of investment to 2020 = circa 30% increase in power bills (or 19% dual fuel according to RWE); or
• B. UK Government / Committee on Climate Change: £150bn of investment to 2020 = 11% reduction in dual fuel energy bills.

The results are in..................

We had 55 separate responses. The headline result was follows:

• A: 100%
• B: 0%

Although not a serious survey, as Atherton goes on to explain, it is possible to draw some conclusions.

...what this poll does show is that the government is failing to convince a key constituent (the equity market) that its affordability projections are plausible. Nor given RWE’s intervention (and feedback on our research we received from the other leading utilities) does it appear that the major utilities find government assertions convincing either. This represents a dramatic failure by the government on what is the central issue on energy policy in the UK. So even if the government’s projections are actually correct, their failure to convince anyone outside Whitehall of the fact creates a major credibility problem.

Comments

[Neil Craig]

And politicians say people don't trust investment bankers ;-)

[Mr. Bliss]

100% of poll respondents don't believe Mr Davey and the CCC
--

Oh come on, I don't think this statistic is true for one second - can't you make it a bit more believable - say, 97% of poll respondents don't believe....... /sarc

[OneTrophyWin]

markets rule ok

[Latimer Alder]

After Sunday's car crash interview with Andrew Neill I doubt if even Ed Davey believes in himself....

[Cumbrian Lad]

Clearly the investment community are numerate and savvy enough to understand that DECC's 11% 'reduction' is in fact a nominal reduction from where prices 'would have been' had they not adopted the policy they have. DECC are understandably reluctant to admit that that end point will be 30% higher than it is now, due to the policy they've adopted.

It's the same species of drivel that politicians use when the speak of 'cuts'.