Climate policy pushing UK manufacturers’ bills higher than German levels

Climate policy is pushing major energy users’ bills higher than German levels, claims a leading UK manufacturers’ group the EEF. It warns that UK firms are paying significantly more than […]

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By Vicky Ellis

Climate policy is pushing major energy users’ bills higher than German levels, claims a leading UK manufacturers’ group the EEF. It warns that UK firms are paying significantly more than their European rivals.

A recent survey of over 200 manufacturers by the group also found that only one in eight think current policy will boost investment.

The EEF’s research follows hot on the heels of the organisation’s call last week for a “compensation package” to be included in the Chancellor’s Autumn forecast, due at the end of November.

Terry Scuoler, EEF’s chief executive said today: “The Chancellor recently spoke about environmental laws and regulations piling costs on the energy bills of households and companies. Our analysis demonstrates how this is damaging our industrial competitiveness. By 2013 our energy-intensive manufacturers will be paying 15% more than their competitors in Germany.”

The EEF claims that the carbon floor price and the EU Emissions Trading Scheme could widen this gap even further.

DECC said it was drafting a package of measures due out later this year that it hoped would make the industry happy.

A DECC spokesperson added: “There would be no advantage – either for the UK economy or in terms of global emissions reductions – in simply forcing industrial production to relocate to other countries.”

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