"From October 1, standing charges and levies on industrial electricity bills will begin to rise sharply, with the full increase landing in April. Energy brokers said non-commodity costs - the fees for using the grid and funding subsidies - will make up as much as 65% of firms' total bills, regardless of how much electricity they consume. For a company paying £300,000 a year for power, standing charges will jump from £32,000 to £64,000."
"The Confederation of British Metalforming (CBM) warned the hikes would wipe out firms already under strain. Stephen Morley, the group's president, said: "We will end up getting to net zero by having no industry. We will lose companies over this, without a doubt. They cannot afford this increase." While heavy industries such as steel and ceramics benefit from the Energy Intensive Industries subsidy, thousands of other firms in heat treatments, forgings and sheet metal manufacturing are excluded."
Government-approved standing charges and levies on industrial electricity bills will rise from October 1, with the full increase implemented in April. Non-commodity costs for grid use and subsidy funding could account for up to 65% of firms' total bills, independent of consumption. Standing charges for a company paying £300,000 annually could increase from £32,000 to £64,000. A new levy from November will fund construction of the Sizewell C nuclear plant. Many smaller manufacturers in heat treatment, forgings and sheet metal work are excluded from the Energy Intensive Industries subsidy and will bear costs that subsidise competitors. These shifts risk making UK manufacturing uncompetitive and causing firm closures. Charges are defended as necessary to fund grid upgrades, secure energy supplies and protect energy-intensive businesses from fossil fuel volatility.
Read at Business Matters
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