Monday, 19 September 2016

ENERGY INTENSIVE INDUSTRIES - CLIMATE POLICY CASUALTIES

This report explains how the UK's climate change policies are having a much greater effect on the energy intensive industries (EII's) than the government is willing to admit. Data from the Annual Business Survey conducted by the Office of National Statistics (ONS), shows that while companies engaged in the manufacture of iron, steel and ferro-alloys had a Gross Operating Surplus (GOS) of approximately £1.3 billion in 2008, their energy costs of £0.57 billion were equal to 44% of that sum. In 2014 the sector had an operating surplus of £169million, and energy costs were 330% of GOS.

Mistaken concentration on present policy impacts, ignoring much larger effects in the near future. Even EII's entitled to compensation are presently paying energy prices as much as18% higher than they would be without energy and climate policies, and for an EII without compensation they are 26% higher. However, by 2020 the figures will be 22% higher for a compensated business, and 76% higher for an uncompensated business.

No comments: