The UK’s Strategic Heavy Industries warned that they risk Existence left high and dry lack of support in in governmentupcoming energy strategy, warning this failure to follow European countries reduce gas and electricity costs will put British business in risk.
government long-awaited proposals are expected to be laid out this week for times-in-generation drive invest in nuclear power and, perhaps more onshore wind and solar power and also an endorsement of continued oil and gas exploration in the North Sea.
The plan is expected to set out ministers on Thursday was postponed due to controversy in office, which technologies to back including fraught battle over new nuclear power plants, with The Treasury was seen as unwilling to invest large sums in costly projects.
One industry source said large energy consumers were “not expecting anything” help them on gas or electricity, the latter of which can cost up up to 60% more how price paid by European competitors.
Earlier this month, Boris Johnson vowed to take action to “meet the needs of of British steel, British ceramics and all that of British industry”, but business and energy secretary Kwasi Kwarteng, told the deputies last week that government had already taken steps to support industrial firms facing skyrocketing costs.
On the background of inflating electricity bills for strategically important companies and large manufacturing firms, energy-intensive industries told the Guardian that mixed messages left for fear that they will receive little or no help.
Richard Warren, Representative for in trade body UK Steel said it had “long called for government to reduce politically and regulatory controlled elements of electricity bills in line with actions taken by governments elsewhere.”
Easy update compensation a scheme that compensates electricity-intensive industries on in cost of UK emissions trading scheme, but which is overdue on Friday will be only a “partial solution”.
UK Steel said the industry “needs full compensation for Expenses of carbon in electricity, increase in relief on renewable energy charges and similar reductions in network costs like already provided by governments in France, Germany and the Netherlands”.
Stephen Elliott, Executive Director of The Chemical Industry Association has warned that prolonged high energy costs could cause plants to reduce operations or foreign firms take over business in the other place.
“I can not stand in front of Kwasi Kwarteng and say businesses will be closed for a week on Thursday, but I can not say that they will be viable and working full tilt, either,” he said. “Things are getting harder as our ability to pass across cost our customers are becoming more and more more difficult.
“Our continental European competitors we get more relief [following the EU’s recent crisis framework enabling more state aid in this area]. If we leave it until the moment when the chemical plant closes, restarting it will be very difficult in terms of health and safety. safety look responsibly.”
Weekend transport secretary Grant Shapps, rejected calls for UK to consider energy rationing as ministers explore ways to increase UK resilience international turmoil in the oil and gas markets after the Russian invasion of Ukraine led to record increases in expenses.
Kwarteng told the Sunday Telegraph that nuclear power and offshore wind turbines play more role in energy production, with as many as seven new nuclear power plant by 2050.
Chemical companies use disproportionately large sums of electricity in their processes. Inovyn, a chlorine manufacturer working in a factory in Runcorn on banks of Mersey consumes the same amount of electricity as the neighboring city of Liverpool.
Elliott warned that some businesses owned overseas companies may reconsider their investments in UK if nothing is done about energy prices.
“If you asked investors in chemicals around the world good causes for comes to the UK, but energy costs have always been a negative factor. So British sites of foreign parents always marked down on that front and will be more so. Please don’t leave it until we close because by then it will probably be too late.”
Elliot wrote to Chancellor Rishi Sunak: in March calling for more support for British companies will pay for carbon emissions, pointing to measures taken by European countries.
The Guardian appealed to governments business department for comment.
