Two major UK business organisations have urged Government to tackle the problems of fuel cost increases facing energy-intensive industries – or put future job creation and investment at risk. The manufacturers' organisation, the EEF, says that analysis published by the Government shows that climate policies could add up to 52 per cent to electricity costs for major energy users by 2020 – with the proposed Carbon Price Floor (CPF) alone costing manufacturers £250m annually on its introduction next year.
"UK Industry was already facing energy bills which made them uncompetitive before the substantial additional burden of the unilateral Carbon Price Floor," said EEF Director of Policy Steve Radley. "We have now reached a tipping point where the cumulative burden of UK climate change policy will make it uncompetitive for some sectors to invest and create jobs in the UK."
The EEF has put forward its own recommendation in four main areas – the CPF, the EU Emissions Trading Scheme, Feed-in Tariff exemption and Climate Change Levy relief. And the employers' organisation, the CBI, has called for CPF exemption for most energy-intensive industries, saying that the Levy makes it increasingly uncompetitive for such industries – which employ 225,000 people – to remain in the UK.
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