Britain's energy security could be thrown into jeopardy along with £100 billion of commercial money needed to deliver it should the Planning Bill fail to become law, the CBI has said. It also believes that the economy will be further hit by obstacles to the development of the transport network if the present planning system is allowed to continue.

The CBI has raised concerns as the Bill faces its second reading in the House of Lords tomorrow after a difficult passage through the Commons.

The Bill, which would greatly simplify the planning process for large infrastructure projects, is facing opposition from the Conservatives and some crossbench peers. They argue that it would reduce democratic accountability by removing some planning responsibility from local councils. In the Commons some Labour backbenchers had raised the same concerns, threatening to derail the Bill before it reached the Lords.

Business groups have long called for an overhaul of the planning system because of the time taken for large projects to get through the current processes. It fears that the years spent in multiple applications, public hearings and appeals is deterring companies from making big investments.

The CBI has highlighted the threat to energy development, which it says requires urgent attention as the country faces an energy shortfall in less than ten years. John Cridland, its deputy director-general, said: “If the Planning Bill doesn't go through, then the lights will go out for industry.”

A shortfall of energy supply has been predicted for 2015 onwards, which has triggered the Government's push for new nuclear power and development of renewable energy. However, nuclear and large producers of alternative power will be big planning issues. Britain's most recent nuclear power station - Sizewell B - took eight years to clear the planning process.

Mr Cridland said that nuclear power generation bears the additional delay of taking a long time to build. “The planning system as it is is just not fit for purpose,” he said.

The Planning Bill would replace the current system for large projects, which the CBI expects to total about 40 a year.

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