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UK manufacturers ''concerned by energy price rises''

31 October 2011
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UK manufacturers ''concerned by energy price rises''The rising cost of energy is hitting many manufacturing companies in the UK hard, it has been claimed.

Operations management professionals may have to adjust their strategies as the cost of gas and electricity remains high, with EEF, the manufacturers' organisation suggesting that part of the problem relates to the UK government's climate change policy.

According to the body, this is pushing up utilities bills to rates that are significantly higher than those paid by production businesses' competitors in Germany.

As a result EEF wants ministers to reassess the current situation and put together an Energy Intensive package to cover those firms with high power costs well before the gap widens with the introduction of the Carbon Price Floor in 2013.

Terry Scuoler, chief executive of the body, remarked: "The government must bring forward a package of measures to compensate those industries most affected by its climate change policies."

UK energy prices are currently ten per cent higher than those in German and could rise to 15 per cent greater by 2013.

EEF has welcomed the announcement this week that almost £1 billion of government investment is being made through the Regional Growth Fund, much of which will support manufacturing and infrastructure projects.ADNFCR-3058-ID-800781613-ADNFCR
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