Businesses protest over cost of green energy reforms

September 2, 2013 by  
Filed under Green Energy News

Official figures suggest the unit price of electricity has already risen by
30pc as a result of the policies and that prices will have risen by 50pc by
2020. However, ministers insist the policies will be cheaper than doing
nothing because they say gas plants will only become more expensive to run.

An npower survey of 66 senior energy managers from major UK industrial and
commercial businesses and energy consultants showed that less than half
understood exactly how their businesses would be affected.

Three out of four said they were concerned over the reforms. Most cited costs
as their leading concern.

Wayne Mitchell, npower’s industrial and commercial sales and marketing
director, said: “It is revealing that businesses are worried about the
impact on UK competitiveness, as the last thing Government will want is
businesses moving abroad as a way around EMR [energy reforms].”

The warning echoes those by manufacturers’ organisation, the EEF, which has
said that “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”.

Ministers have already proposed schemes to exempt major energy users from some
of the costs of the reforms. But critics say they do not go far enough to
help offset the costs.

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