TUC warns on power for UK’s energy intensive industries
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High energy costs and the UK's emissions targets are making life hard for the UK's steel, cement, ceramics and other core industries, says the TUC which is warning that thousands of jobs could be at risk without more government support for companies in the energy intensive sector.
A report produced by the TUC and the Energy Intensive Users Group (EIUG) says that there are currently 800,000 people working in the UK's energy intensive industries (EIIs). It says this sector contributes £95bn a year to the economy – a fifth of the UK's manufacturing total – but warns that heavy energy users are operating under difficult conditions and, without ministerial action, jobs and investment could be lost to overseas competitors.
The report – Building Our Carbon Industries – says that in recent years UK EIIs have significantly improved their energy efficiency and are much greener than many of their global competitors. But the high cost of energy and the technology needed for them to move across to a low carbon economy means that further green progress is at risk without a proper government industrial strategy.
Last week a report from the Department for Business, Innovation and Skills (BIS) warned that the UK's heavy energy users were paying at least double the amount in renewable energy subsidies and greenhouse gas emission standards that their competitors in Europe are paying.
Pointing to the recent closure of the Rio Tinto Alcan aluminum smelter in the North East and the Thamesteel plant in Kent, the report warns that if more EIIs like these disappear, not only will there be a loss of jobs, output and tax revenues, global carbon emissions will also soar as the UK has to import materials from less energy efficient producers.
