Electricity market reform package step in right direction though costs to Industry must be clarified – EEF

Government urged to publish cost assessment and package for energy intensive industries to reassure companies planning to invest in UK

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EEF, the manufacturers’ organisation gave today’s Electricity Market Reform White Paper a mixed response. Whilst Industry will acknowledge efforts to contain the cost of supporting renewable energy, it remains in the dark on the total impact of climate policy on economic growth and, industrial energy users in particular.

In response, EEF is urging the government to speed up publication of its assessment of the total cost and cumulative impact on the economy, as well as introducing compensatory measures to protect energy intensive sectors.

Commenting on White Paper, EEF Chief Executive, Terry Scuoler, said:

“The reforms announced today could provide the building blocks for a more cost-effective approach to decarbonising our energy supply and Industry will welcome moves to contain the cost of supporting renewable energy.

“However, the transition to a low-carbon economy will not be cheap and is likely to significantly increase energy prices. A comprehensive assessment of the impact of the government’s overall approach to decarbonising our energy supply on electricity prices remains essential.

“We need a clear picture of the implications of the cumulative cost of climate and energy policy. This will be critical in reassuring manufacturers who are planning to invest in Britain that their competitiveness will not be damaged by allowing electricity prices to get out of line with their major competitors.

“The government must deliver on its commitment to not only provide this information as a matter of urgency. It must also introduce the promised package of compensatory measures for energy intensive sectors in order to safeguard their international competitiveness. “

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