In its annual energy statement, the Department of Energy and Climate Change said the cost of electricity will increase dramatically over the next two decades due to government policies.
These could add up to 44% to the price Britain’s energy-intensive companies pay for their electricity by 2020 and 53% by 2030.
A previous analysis from manufacturers’ organisation EEF showed they already pay 10% more than their German competitors and this is likely to widen to 15% by 2013.
For less energy-intensive businesses, the picture is equally alarming – policies could push their electricity prices up by 51% by 2020 and as much as 58% by 2020.
EEF believes that today’s Annual Energy Statement has reinforced the urgent need for a package of measures to protect businesses in energy-intensive sectors.
Commenting, EEF director of policy, Steve Radley, said: “The analysis released today reinforces the urgent need for measures to safeguard the jobs and investment in Britain’s energy-intensive industries. But the bigger picture is that the government needs to get a firmer grip on the energy costs most directly under its control – those arising from its own policies. Failure to do so could threaten future investment in the manufacturing sector.”