Carbon policies could double UK electricity prices by 2020 – CIA

29 July 2011 18:28  [Source: ICIS news]

LONDON (ICIS)--Electricity prices in the UK could double in less than a decade if government policies to reduce carbon emissions and promote a low-carbon economy are implemented, the Chemical Industries Association (CIA) claimed on Friday.

Chemical executives had expressed “indignation” at the government’s latest assessment and interpretation of future energy costs, it said.

Responding to the publication by the Department of Energy and Climate Change (DECC) of a cumulative impact assessment of its low-carbon policy proposals, the CIA was deeply critical of the government’s suggestion that electricity prices will rise by 52% (without taking account of inflation) by 2020, when it believes the actual increase could be closer to 100%.

“I remain dismayed that the government should want to proudly pursue implementation of policies that will result in an increase of such magnitude,” CIA CEO Steve Elliott said.

“Comparing the impact with many competitor businesses in other countries, I can just imagine how they will be rubbing their hands in anticipation,” he added.

“It’s time we recognised the true policy cost comparisons with other countries where greater relief is on offer.”

For more on electricity prices visit ICIS Heren

By: Nigel Davis
+44 20 8652 3214

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