Britain’s manufacturers want to switch to cleaner, electric-powered operations but sky-high electricity prices are holding them back.
New data from Electrify Industry, a coalition of leading manufacturers and investors, reveals that if industrial electricity costs were tackled, up to 2 million new jobs could be created and £100 billion in economic value delivered across the UK.
However, the cost of electricity in Britain remains the highest in the OECD—three times higher than in France, 60% more than in Germany, and four times the price in the US.
Indeed the spiralling cost of power is one of the reasons cited by Tory leader Kemi Badenoch for her abandoning the 2050 target.
This disparity is stalling investment in industrial electrification, despite the overwhelming demand for it.
More than 80% of manufacturers say electrification is their preferred route to decarbonising and modernising their processes.
But without meaningful action on electricity prices, the UK risks missing out on billions of pounds of investment.
Government is currently exploring options to lower industrial electricity prices for businesses that make the switch. If the right policies are implemented, Electrify Industry estimates that over £3 billion could be invested in electrification over the next seven years, boosting the UK’s manufacturing sector and strengthening domestic supply chains.
The movement, powered by Make UK, was launched this week in Parliament with support from major industrial players including Siemens, Schneider, Renewable UK and AMP Clean Energy.
The coalition is pushing for reforms that will allow companies to transition affordably and ensure the UK remains competitive in the global race to net zero.
Without urgent action, they say the risk is driving investment and jobs overseas, while countries with lower energy costs surge ahead in industrial decarbonisation.
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