A new report comparing the UK’s energy costs and climate change policies with other countries should be a “wake-up call” to the Government, the CBI said.
The report by the UK Department for Business, Innovation and Skills (BIS) states the nation’s energy and climate change policies add more to energy intensive industries’ electricity costs than in any other country.
Katja Hall, CBI Chief Policy Director said the Government’s £250 million funding to help cut costs of electricity prices for businesses that use large amounts of electricity won’t be enough.
She said: “These figures should come as a wake-up call to the Government – the welcome support for energy intensives announced last year simply won’t go far enough. It must help those companies most at risk from higher energy costs and make provisions for them in its forthcoming Energy Bill.
“These are the companies which produce the materials we need to build technologies, like wind turbines, that will help the UK make the transition to a low-carbon economy.”
A BIS spokesperson said the Government is looking at ways to reduce the impact of energy costs on electricity-intensive industries as a result of the electricity market reform.