London, 8th October 2021 – Leaders representing the UK’s energy intensive industries are pleased that the Secretary of State agrees on the need to act on their concerns ahead of the winter to prevent supply chain disruption.
The Energy Intensive Users Group (EIUG) welcomed the opportunity to meet the Secretary of State this afternoon and are pleased that he wants to find practical solutions to the challenges our members face going into this winter.
EIUG Chair, Dr Richard Leese, commented:
‘Our message to the Secretary of State was for prompt and preventative measures to help avoid recent production curtailments in the fertiliser and steel sectors being replicated in other areas this winter. EIUG will work with government to avoid threats both to the production of essential domestic and industrial products, as well an enormous range of supply chains critical to our economy and levelling up the country.’
EIUG welcomes the positive first steps from Secretary of State Kwarteng to develop practical solutions and work with Treasury colleagues. EIUG committed to work with government and Ofgem on the measures we set out this week to overcome the immediate challenges posed by the unprecedented increases in energy prices this winter.
Beyond the immediacy of this winter, the Government must tackle the underlying issues that lead to uncompetitive energy costs for UK EIIs compared to their international competitors, as well as ensuring access to reliable and affordable baseload supplies of energy needed to drive clean growth.
EIUG Contact: Amrik Bal, Director Energy Intensive Users’ Group (BalA@eiug.org.uk)
Notes to editors:
The EIUG represents the UK’s Energy Intensive Industries (EIIs) including manufacturers of steel, chemicals, fertilisers, paper, glass, cement, lime, ceramics, and industrial gases. EIUG members produce materials which are essential inputs to UK manufacturing supply chains, including materials that support climate solutions in the energy, transport, construction, agriculture, and household sectors. They provide high-skilled, well-paid employment, supporting 200,000 jobs directly and 800,000 jobs indirectly around the country, adding £38bn to UK GDP.
These foundation industries are both energy and trade intensive – remaining located & continuing to invest in the UK and competing globally requires secure, internationally competitive energy supplies and freedom to export without tariff barriers. However, inward investment, growth and competitiveness have been hampered for years by UK energy costs higher than those of international competitors. In some cases, investment, economic activity & jobs have relocated abroad, leading to a subsequent increase in imports.