British government ministers are coming under increasing pressure ahead of the publication of the long-awaited energy review, with the Energy Intensive Users Group (EIUG) reportedly set to publish a damning critique of its policies.
The Mail on Sunday newspaper reports that the EIUG has teamed up with trade union Amicus to deliver a stark warning of the impact that soaring gas prices are having on industry. The group says that wholesale gas prices are running more than 50% higher than last year, and the prospect of supply interruptions – so close last winter – are again a real possibility in the months ahead.
As a consequence, the EIUG believes thousands of jobs could potentially be at risk as energy costs drive a contraction in UK manufacturing. The EIUG’s analysis is timed to coincide with the release of the government’s energy review, pencilled in for July 11.
As well as a recommending a high profile return to nuclear generation, the review is also thought likely to advocate sweeping changes to planning rules to allow easier construction of renewable energy infrastructure and, crucially for major energy users, more gas storage capacity.