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Fibre2Fashion
23-06-2025
- Business
- Fibre2Fashion
UK's new Industrial Strategy aimed at boosting growth, investment
As the UK government unveiled its bold new Industrial Strategy today, over 7,000 British businesses are expected to see their electricity bills slashed by up to a quarter from 2027. The 10-year, multibillion-pound strategy sets out a ten-year plan to boost investment, create skilled jobs and tackle two of the biggest barriers facing UK industry—high electricity prices and long waits for grid connections. As the UK unveiled its bold new Industrial Strategy today, over 7,000 British businesses are expected to see their electricity bills slashed by up to a quarter from 2027. The 10-year, multibillion-pound strategy sets out a ten-year plan to boost investment, create skilled jobs and tackle two of the biggest barriers facing UK industryâ€'high electricity prices and long waits for grid connections. British manufacturers currently pay some of the highest electricity prices in the developed world while businesses looking to expand or modernise have faced delays when it comes to connecting to the grid. For too long these challenges have held back growth and made it harder for British firms to compete. Today's announcement marks a decisive shift — with government stepping in to support industry and unlock the UK's economic potential, according to a UK government release. From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors. These firms, which support over 300,000 skilled jobs, will be exempt from paying levies like the Renewables Obligation, Feed-in Tariffs and the Capacity Market, helping level the playing field and make them more internationally competitive. Eligibility and further details on the exemptions will be determined following consultation, which will be launched shortly. The government is also increasing support for the most energy-intensive firms like steel, chemicals and glass by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger. These businesses currently get a 60-per cent discount on those charges, but from 2026, that will increase to 90 per cent. This means their electricity bills will go down, helping them stay competitive, protect jobs, and invest in the future. To ensure businesses can grow and hire without delay, the government will also deliver a new Connections Accelerator Service to streamline grid access for major investment projects, including prioritising those that create high-quality jobs and deliver significant economic benefits. The Supercharger and British Industrial Competitiveness Scheme will be funded through reforms to the energy system. The government is reducing costs within the system to free up funding without raising household bills or taxes and intends to also use additional funds from the strengthening of UK carbon pricing, including as a result of linking with the EU carbon market. 'We have set out an intention to link emissions trading systems, as part of our new agreement with the European Union to support British businesses. Without an agreement to do this, British industry would have to pay the EU's carbon tax," the release said. 'We intend to link our carbon pricing system with the EU's, we will ensure that money stays in the UK—which allows us to support British companies and British jobs through these schemes,' it added. A June report from manufacturing association Make UK cautioned that without government intervention, Britain's energy-intensive sectors could face long-term decline. It called for measures such as network cost reforms, targeted relief schemes and more predictable energy pricing. Fibre2Fashion News Desk (DS)
Epoch Times
14-05-2025
- Business
- Epoch Times
British Gas Boss Says Renewables Will Not Bring Electricity Prices Down
Britain's shift to renewables will not reduce electricity prices, the boss of British Gas has said. Chris O'Shea, the chief executive of British Gas's parent company, Centrica, Centrica has one of Europe's largest renewable energy portfolios and hopes to invest up to 4 billion pounds ($5.3 billion) by the end of 2028. O'Shea argued the strike price under a Furthermore, floating offshore wind and tidal stream remain significantly more expensive. 'They may give price stability, and avoid future price spikes based on the international gas market, but they will definitely not reduce the price,' said O'Shea. Related Stories 6/8/2023 3/16/2025 He said that 'the next time you hear someone say the build out of renewables will reduce UK electricity prices, ask them to explain how.' 'Because we need to get the facts out there so we can make the right decisions-we need to stop having a polarised debate populated with unsubstantiated, but convenient, sound bites,' he said. He said that he fully supports 'the move to a cleaner energy system.' In 2019, the UK passed laws requiring the UK to bring all greenhouse gas emissions to net zero by 2050. The UK is known for being a global leader in renewable energy, especially in terms of offshore wind energy. It has more capacity installed than any other country, accounting for roughly 20 percent of global offshore wind capacity, according to UK Research and Innovation, a national funding agency investing in science and research. However, the UK also has some of the According to the British government, electricity prices in the UK have gradually become higher than those of most other EU countries. In the early 2000s, its domestic electricity prices were the second lowest in the EU, which was then the EU-15. Leaders have said that the huge spending needed to shift away from fossil fuels will reduce energy bills. Labour UK Secretary of State for Energy and Climate Change Ed Miliband, who is pursuing a goal to decarbonize the whole economy via his Clean Power 2030 Action Plan, has promised to shave 300 pounds ($400) off the average household electricity bill by 2030. He nergy bills are rising due to spikes 'in global gas markets.' National Energy System Operator NESO said the Clean Power 2030 Plan would cost 40 billion pounds ($53 billion) or more annually by the end of 2030. Critics of British net-zero policy have argued that renewables have added to the cost of bills. The think tank Net Zero Watch, which scrutinises climate and decarbonisation policies, recently disputed claims that high electricity prices are due to the influence of gas prices on wholesale markets. It It said that around 'three quarters of the increase in bills since 2015 can be attributed to Net Zero' and that a 327-pound ($435) real-terms increase is driven primarily by renewables subsidies (83 pounds), carbon taxes (39 pounds), grid balancing (26 pounds), Capacity Market costs (26 pounds), and grid strengthening (23 pounds). A Department for Energy Security and Net Zero spokesman told The Epoch Times: 'We are making the UK a clean energy superpower to get off the rollercoaster of fossil fuel markets controlled by dictators and replace that with clean homegrown power we control. That is how we can protect family finances and our national finances. 'As shown by the National Energy System Operator's independent report, clean power by 2030 is achievable and will deliver a more secure energy system, which could see a lower cost of electricity and lower bills.'
