Manufacturers suffer with high energy costs
EEF say that UK manufacturers are being burnt by high energy costs
The UK manufacturing sector is getting an uncompetitive deal in terms of energy cost which is only set to get worse, the Engineering Employers' Federation has said.
The EEF, which represents manufacturing companies in the UK, has said that government policy is forcing businesses to use more renewable energy – which costs more.
The organisation believes that companies should receive rebates for using more environmentally friendly power, which will help them to stay in business and remain competitive.
EEF analysis shows that the government's approach to climate change policies is pushing UK energy prices above those in Germany and that the gap is set to widen even further in 2013 when it introduces the unilateral Carbon Price Floor.
According to the analysis, UK energy prices for energy-intensive manufacturers were approximately 10% higher than Germany in 2010 and will be 15% higher by 2013. Currently, the fact that Germany’s most energy intensive industries receive a 98.5% rebate on the country’s renewable energy levy while their UK equivalents receive no relief is responsible for a large part of the difference in prices.
EEF Chief Executive, Terry Scuoler, said: “As a first step, the government must bring forward a package of measures to compensate those industries most affected by its climate change policies. Failure to do so will send a strongly negative signal to manufacturers who are looking at whether to make their next major investment in the UK".
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