Energy review needs 'real teeth' says EEF

Commenting on the announcement during the Energy Secretary's annual energy statement, EEF chief executive Terry Scuoler said that while the manufacturers' organisation supported the idea of competition review of the UK's energy market, it would need to have "real teeth". Scuoler believed that "given the numerous reviews into the energy market and competition that have taken place over the years, and their subsequent failure to deliver any real change, government must ensure that this time it will make a material difference by undertaking a rigorous evidence-based approach, with real teeth." Specifically on the government's intention to review green levies, he went on: "It is clear that unilateral climate change policies are adding costs to the UK manufacturing industry that are not borne by our competitors. We welcome any action that investigates the benefits of such policies, their costs to business and their impacts on the overall reduction of greenhouse gas emissions, both at UK and global level. We must remember that we can't tackle climate change alone and the UK must push for a global agreement which addresses the issue of competitiveness and delivers genuine global reductions." On the need to tackle the rising cost of energy for industry, Scuoler said that while the price of energy for residential consumers has featured heavily in the news recently, it was important that government also remembered the costs faced by the manufacturing sector. "We would urge the government to recognise the impact of rising energy prices and uncompetitive green levies on the UK manufacturing sector's ability to grow and compete in a highly competitive global marketplace. EEF has long argued that the energy costs associated with manufacturing in the UK put us at a competitive disadvantage with the rest of the world, hampering the sector's ability to thrive and continue playing a key role in rebalancing the economy," he concluded.