“Fair prices and targeted support”: CBI urges action from government on high energy bills

The Confederation of British Industry (CBI) is urging the government to remove net zero policy costs from electricity bills, claiming these costs are harming UK business competitiveness. Rain Newton-Smith, the chief executive of the CBI, pushed for this change at the CBI’s National Business Dinner in London.

With government officials and business owners in attendance, Newton-Smith aimed to urge the Treasury and Department for Business and Trade to include measures to make energy costs more competitive in its forthcoming industrial strategy. Other countries such as France, Germany, and the US are cited to have significantly lower costs.

Manufacturers’ trade body Make UK said its members’ energy bills are 46% higher on average, compared to competitors in EU countries. Furthermore, electricity prices in the UK are around 19% above the EU’s average.

The key message from Newton-Smith was that net zero transition and policy costs should not be borne by businesses alone. The transition to renewable energy, she said, has advanced “too fast”, thereby negatively impacting industries such as manufacturing.

“[Firms] need fair prices and targeted support to decarbonise now. Across the economy, the message is clear: we cannot deliver economic security without action on energy,” she said.

Industrial strategy to be released next week

An industrial strategy, the first in eight years, is due to be released imminently by the government. It’s expected to include calls to bolster nuclear energy, including small modular reactors, as well as aligning economic growth with net zero goals.

This announcement will come after Labour’s Spending Review is published next Wednesday, where we can expect to see full details of the government’s budget on net zero policies. We will continue to provide updates on the Energy Advice Hub as they are announced.