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UK: Heavy industries fear lack of support ahead of new energy strategy

UK: Heavy industries fear lack of support ahead of new energy strategy
UK: Heavy industries fear lack of support ahead of new energy strategy

Heavy energy-using industries in the UK have warned that they are at risk of being left without resources due to a lack of support in the government’s upcoming energy strategy.

According to reports, they also added that British businesses will be put at risk unless corrective measures, similar to those employed by European countries to reduce electricity and gas prices, are not followed.

This week on Thursday, the UK government is expected to draft proposals regarding a once-in-a-generation investment in nuclear power, and potentially more solar and wind power, while also approving the continuation of oil and gas exploration in the North Sea.

The plan had been getting delayed due to disagreements among cabinet ministers about which technology to be backed, including a tense battle regarding new nuclear plants, and the Treasury being hesitant to invest in expensive projects.

An industry source stated that heavy energy-using firms are not expecting anything that will help them in terms of gas or electricity, even though electricity prices might cost 60% more than what European competitors offer.

Last month, Prime Minister Boris Johnson had promised measures to address the needs of the entire British industry, including ceramics and steel. However, Secretary of Business and Energy, Kwasi Kwarteng told MPs last week that steps to support industrial firms from soaring costs have already been taken.

Richard Warren, spokesperson for the trade association UK Steel, stated that it had been urging the government for reducing politically- and regulatory-controlled elements in electricity bills, similar to how other governments have done.

The trade body stated that the industry requires full compensation for the carbon costs in electricity, a rise in relief on renewable levies, along with network cost reductions similar to those provided in EU countries like Germany, France, and the Netherlands.

Transport Secretary, Grant Shapps, had rejected calls for the country to ration energy last weekend as UK ministers looked for ways to improve the nation’s resilience against international shocks in oil and gas markets following Russia’s invasion of Ukraine.

Stephen Elliot, CEO of the trade body Chemical Industries Association, has warned that continued high energy costs will cause factories to scale down operations, or have foreign-owned businesses reconsider investment in the UK.

Source credit: https://www.theguardian.com/business/2022/apr/03/high-energy-using-industries-fear-lack-of-support-from-uk-ministers

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.