UK government data published on 30 September show that the industrial electricity price in the UK is the highest in Europe and the G7, even after various taxes and levies have been removed. This continues to put British energy intensive industries at a competitive disadvantage, deterring investment and undermining economic growth. The EIUG calls on Government to urgently address high wholesale prices and deliver on its proposed uplift to the network charging compensation scheme.
The energy price statistics that DESNZ published on 30 September show that the UK ranks the highest in terms of industrial electricity prices within members of the International Energy Agency over the second half of 2024, with the UK industrial electricity price 94.3% – nearly double – the medium price of all of its members.
If the government delivers on its proposal to increase the network charging compensation scheme, network and policy costs will be broadly aligned with those in Europe for eligible electricity intensive industries with the principal driver of the remaining price gap being higher UK wholesale electricity prices.
Arjan Geveke, Director of the EIUG, said: “The Government’s own statistics show that UK industrial electricity prices are the highest in Europe, even after the various compensation and exemption schemes are applied. This is putting vital British energy intensive industries at a competitive disadvantage, deterring investment and undermining economic growth. Government must reduce wholesale prices for industry and urgently increase the uplift of the network charging compensation scheme