London, 10 April 2024: With over 17 years of experience in manufacturing and steel industry, Gareth Stace – Director General of UK Steel – has been selected as Chair of the Energy Intensive Users Group, taking over from Dave Dalton.
The EIUG’s change in Chair comes as the UK prepares for a series of critical elections, with energy prices likely to remain volatile and relative high British industrial electricity prices and risk of carbon leakage at the forefront of political decision making.
In the UK, energy intensive industries face major challenges on the road to decarbonise, such as policy uncertainty around the UK Emissions Trading Scheme (ETS), connection to electricity networks, electricity market reform and/or decommissioning of the gas grid. As well as these domestic challenges, international change has seen the US Inflation Reduction Act attract billions of inward investment to decarbonise US energy intensive industries. The UK and EU risk falling behind in supporting their own industries’ ability to compete internationally.
Gareth Stace, Chair of the EIUG, said: “As Chair over the next two years, I aim to act for the interests of all energy intensive industries represented in the EIUG. Energy intensive industries are crucial for the UK’s carbon reduction targets. Our products are key to all future low carbon technologies from solar energy and wind turbines to hydrogen and insulation, new infrastructure and beyond. We will work with Government and other stakeholders to join up Departmental policymaking to establish a long-term strategy for our industries, the foundation of the UK economy.“
“We must fully deliver the package of measures to reduce industrial electricity costs without undermining it with new levies or obligations and continue having access to reliable infrastructure.”
“The UK needs fair and competitive industrial energy prices, security of energy supply and credible energy and climate change policies. These will create jobs, increase inward investment, decrease regional economic differences and reduce greenhouse gas emissions.”