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“Energy-intensive industries will still need compensation”
Energy has barely featured in the general election campaign. Yet for UK energy consumers, particularly industrial users operating in global markets, the stakes are high.
All major parties except UKIP support the Climate Change Act and decarbonisation of the UK economy, which may give comfort to low-carbon energy investors. But according to its manifesto, Labour would legislate to “remove the carbon from our electricity supply by 2030” – a reckless commitment given the continuing difficulties in deploying new nuclear and CCS.
The Lib Dems would legislate for 50-100g CO2/kWh by 2030 as recommended by the Committee on Climate Change (CCC), but would also like 60 per cent of electricity from renewables by then – triple the current level.
All these proposals would add cost to consumers over and above the already expensive climate programme, which the CCC says will have added 98 per cent to industrial electricity prices by 2030. The coalition government has recognised energy-intensive industries need compensation to offset these costs.
The Energy Intensive Users Group is calling on all parties to maintain and expand this support as long as it is required. We also want early repeal of the carbon floor price and support for environmentally responsible development of shale gas. Most of all, we want the market – not government – to identify the most cost-effective way of delivering secure, low-carbon energy at competitive prices.
Jeremy Nicholson, director, Energy Intensive Users Group
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