UK manufacturers to face higher energy costs

By Mike Stones

- Last updated on GMT

Related tags: Manufacturing

Powerful discrepancy: UK energy costs are 10% higher in the UK than Germany
Powerful discrepancy: UK energy costs are 10% higher in the UK than Germany
Energy prices paid by UK firms are 10% higher than those of their German competitors, according to a study by the manufacturers’ organisation EEF.

The gap is forecast to rise to 15% by 2013 when the government introduces the unilateral Carbon Price Floor.

Full burden

According to the latest Barclays’ Manufacturing Weekly Newsletter​: “The figures will increase pressure on Whitehall over how to protect British firms from the full burden of energy and climate change policies.

“A package of measures to help manufacturing is expected to be announced on November 29 and negotiations are taking place between the Treasury and rival departments of business and energy.”

From 2013 all electricity bills will be increased by a carbon floor price. That will add 24% to the bills of an energy-intensive manufacturing firm, calculates the EEF.

The equivalent increase in Germany is expected to be only 16%.

For more information about the energy costs facing UK food and beverage manufacturers, read our article​ 'UK food firms fear of change delays energy savings.''

Related topics: Services

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1 comment

Who will pay for renewable energy?

Posted by Lawrence Leask,

Business and consumers will face huge increases for the cost of energy.

Read Waters Wye Associates' summary report for The Energy Intensive Users available from http://www.excaliburlpa.co.uk/downloads.

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