UK manufacturers to face higher energy costs

The gap is forecast to rise to 15% by 2013 when the government introduces the unilateral Carbon Price Floor.

Full burden​

According to the latest Barclays’ Manufacturing Weekly Newsletter​: “The figures will increase pressure on Whitehall over how to protect British firms from the full burden of energy and climate change policies.​

“A package of measures to help manufacturing is expected to be announced on November 29 and negotiations are taking place between the Treasury and rival departments of business and energy.”​​

From 2013 all electricity bills will be increased by a carbon floor price. That will add 24% to the bills of an energy-intensive manufacturing firm, calculates the EEF.

The equivalent increase in Germany is expected to be only 16%.

For more information about the energy costs facing UK food and beverage manufacturers, read our article​ 'UK food firms fear of change delays energy savings.''​