CIA welcomes findings of UK energy, net zero report

London – The Chemical Industries Association (CIA) on 29 Oct welcomed a UK government energy security and net zero committee report, which highlights the challenges faced by UK manufacturers due to uncompetitive industrial electricity prices.

In its findings, the committee noted that the UK has the highest industrial electricity prices in Europe, around four times higher than those in the US and Canada.

This, it warns, places UK businesses at a competitive disadvantage, forcing the closure of important production sites and the loss of skilled jobs.

The report also raised concern that the new British Industrial Competitiveness Scheme (BICs) does not go far or fast enough: "Many businesses will not survive until it is introduced in 2027.”

The committee drew on evidence from industry, including from the CIA, which highlighted the impact of high industrial energy prices and the need for timely and targeted support for energy-intensive sectors.

In its response, the CIA welcomed “the committee’s recognition that UK industry faces a dire and now enduring competitive disadvantage given we incur the highest energy costs in Europe.

"And there’s a gulf between energy costs borne by UK operations, and those of our US and Canadian competitors.”

Many UK operations face closure before the BICs comes into effect in 2027, added the association, pointing to a committee recommendation to pursue a fixed-price energy scheme for those businesses most affected, within the next 6 months.

In its evidence, the CIA warned that the closure of key UK production sites affects not only local jobs but also national supply chains, forcing other manufacturers to rely on imports and exporting both jobs and carbon in the process.

Urgent action, it added, “is needed to ensure that energy-intensive industries such as chemicals remain viable in the UK, protecting jobs, investment and the country’s long-term capacity to manufacture the products that support daily life.”