Industry urges government to take urgent action against spiralling energy prices

The group proposes tariff discounts and other winter cost containment measures to ensure that energy intensive industries continue to operate this winter

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The Energy Intensive Users Group (EIUG) has called on the government to act urgently on the escalating crisis in the domestic energy market.

The group, which represents the interests of intensive industrial energy consumers, including manufacturers of steel, chemicals, paper and glass has proposed a series of ‘urgent measures’ to ensure that industries continue to operate this winter.

The EIUG urges the government to introduce winter cost containment measures on gas, electricity and carbon prices to help industries continue producing essential goods.

It also suggests that Ofgem should replicate the tariff discounts which are available in competitor industries in Europe.

EIUG Chair Dr Richard Leese said: “We have already seen the impact of the truly astronomical increases in energy costs on production in the fertiliser and steel sectors.

“Nobody wants to see a repeat in other industries this winter given that UK energy intensive industries produce so many essential domestic and industrial products and are intrinsically linked with many supply chains.

“Now is the moment for the government and Ofgem to take preventative action.”

A BEIS spokesperson said: “We are determined to secure a competitive future for our energy intensive industries and in recent years have provided them with extensive support, including more than £2 billion to help with the costs of energy and to protect jobs.

“Our exposure to volatile global gas prices underscores the importance of our plan to build a strong, home-grown renewable energy sector to further reduce our reliance on fossil fuels.”

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