Industry association UK Steel and producer 7Steel – the former Celsa Steel UK – along with other industrial companies, are calling for a cut in energy prices. If not delivered, this puts the UK at risk of missing the clean industry boom, Kallanish notes from a joint letter.
A coalition of manufacturers, investors, and climate groups have called on Rachel Reeves, Chancellor of the Exchequer, to slash electricity prices to unlock growth, drive electrification, and secure Britain’s place in the global clean economy. It hopes to do this by moving policy costs off electricity prices and into general taxation, which would cut business energy costs by up to 15% and household bills by up to £3a70/year ($492).
The coalition says high electricity prices continue to undermine UK competitiveness, with businesses paying significantly more for electricity than their European counterparts, some of whom have already removed policy costs from electricity bills. This is a topic that UK Steel has consistenty campaigned on.
It suggests that by moving policy costs into general taxation, the government can recover costs more progressively, with these charges disproportionately impacting electricity users, including low-income households and businesses that are struggling to compete internationally. This change would also strongly align with the government’s growth mission by improving UK industry’s global competitiveness and freeing up capital for investment in energy efficiency and low-carbon technologies.
The coalition is also calling for companies to be provided targeted support for industrial electrification.
“This is a critical moment. Without urgent action, the UK risks weakening its economic resilience and missing out on thousands of good jobs and billions in clean industry investment,” it adds.
The global clean manufacturing market is projected to reach $2.6 trillion by 2030.
Carrie Bone UK
