Government 'cuts' UK chemical industry costs
3 Aug 2011
London – Chemical industry leaders are on the warpath over the UK government’s latest assessment of the scale of the energy-cost rises facing the sector.
In a new assessment, the DECC – the UK’s department of energy and climate change – has suggested that government policies, including the recent Carbon Floor Price Support Mechanism. would push up electricity prices by 52% within a decade.
But, according to the Chemical Industries Association, the actual rise due to government policies could be nearer 100% “when you take a commercially realistic view of cost pass-through”.
CIA chief executive Steve Elliot is dismayed that the government is pursuing policies that will result in an increase of such magnitude.
“Comparing the impact with many competitor businesses in other countries, I can just imagine how they will be rubbing their hands in anticipation. It’s time we recognised the true policy cost comparisons with other countries where greater relief is on offer. Chemical businesses are ready and willing to work with government on getting this right for our country,” said Elliot.
“Policy measures such as these … will threaten [the chemical industry’s] contribution to the greening of the UK economy and do very little to signal the UK as a competitive place to invest,” the CIA boss warned.
