Cost to industry of UK electricity reforms slammed by CIA

22 May 2012 16:39  [Source: ICIS news]

LONDON (ICIS)--UK government plans to reform the country’s electricity market and cut carbon emissions will heap more cost on business, trade group the Chemical Industries Association (CIA) said on Tuesday.

“Manufacturing in the UK needs help and support to deliver the green future we all want to see. That help does not have to be free handouts but just a halt to crippling costs would be a start,” CIA chief executive, Steve Elliott said.

Elliott warned that the government’s plans, which include proposal for encouraging more electricity generation from nuclear and other low-carbon resources, will mean higher power costs for industry and force chemical industry investment away from the UK.

It is vital that competitiveness impacts from the energy proposals on sectors like chemicals are minimised, he said, although he welcomed certain aspects of the plans.

“There is no proposal on how to re-incentivise our sites’ energy efficient combined heat and power generation which offers more cost effective carbon savings than many of the technologies being pursued under the EMR [electricity market reform],” Elliott said.

“We look forward to these issues being addressed promptly as part of a fully fledged strategy for energy.”

By: Nigel Davis
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly