“This is a wake-up call. Policies are already adding 30% to business electricity prices, and this will rise to 50% by 2020 and 70% by 2030. Measures to shield the most energy intensive industries from a portion of the costs will make a difference but, unless we get a grip on spiralling policy costs, steeply rising electricity prices for the rest of the sector risk making the UK an increasingly unattractive location for industrial investment and undermining efforts to rebalance the economy. The first step is scrapping costly policies with questionable environmental impact, such as the carbon price floor and the CRC Energy Efficiency Scheme, as soon as public finances allow.”
Notes to Editors – The measures to shield the most energy intensive companies from the impact of climate change policies on electricity prices are the £250m compensation package and the plan to exempt them from the costs of new measures to support low carbon energy under Electricity Market Reform.