Manufacturing Biz #6 - Magazine - Page 11
Iran crisis could be last straw for
industry if Government delays progress
on UK oil and energy security
M
anufacturers across the UK are
already suffering with a “pile up”
of commercial burdens, from
hefty employment costs to rising business
rates, and blockages of oil and ferrous
supplies in Iran’s Strait of Hormuz could be
the last straw for some businesses. Make
UK is pressing the Government to move
quickly to secure energy prices, and to
progress the Rosebank and Jackdaw
developments - to help safeguard energy
security and mitigate rising energy costs.
The effective closure of the Strait of Hormuz
has restricted oil and gas exports from the
Middle East, prompting sharp price spikes.
Oil surged to a six-year high - while UK
gas prices have soared, driven by major
shutdowns at Qatari LNG terminals. While
83% of manufacturers intend to invest in
renewables, power supply uncertainties
today are weighing them down. Industrial
power prices in the UK are already the
highest in the European continent, four
times higher than in the US and 46% above
the global average.
Even accounting for the British Industrial
Supercharger (BIS), the average price
faced by UK energy intensive industries
for 2024/25 is £66/MWh compared to the
estimated German prices of £50/MWh and
French prices of £43/MWh.
The new British Industrial Competitiveness
Scheme (BICS) is expected to be rolled out
in April 2027 to just 7,000 companies –
Make UK argues it must be fairly rolled out
in 2026 to all manufacturers to protect those
impacted by expected bill rises.
Stephen Phipson CBE CEO, Make UK
said: “Manufacturers are calling for the
government to act quickly to progress with
the Rosebank and Jackdaw developments to
mitigate energy costs and energy security
because of the conflict in the Middle East.
Historically high industrial energy costs
are already preventing growth in UK
manufacturing. "The recent developments
in the Middle East add huge pressures
to the sector and risk accelerating deindustrialisation. Whilst manufacturers
are leading the way in renewable energy
we must ensure the sector survives in the
medium term. Ensuring the UK has access
to its own energy reserves is now vital.”
“Manufacturers are calling for
the government to act quickly to
progress with the Rosebank and
Jackdaw developments to mitigate
energy costs and energy security
because of the conflict in the Middle
East. Historically high industrial
energy costs are already preventing
growth in UK manufacturing.”
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