The government is expected to outline the long-awaited proposals this week for a one-generation effort to invest in nuclear and possibly more onshore wind and solar power, and to approve continued oil and gas exploration in the North. Sea. The plan, which is expected to be drafted by ministers on Thursday, has been delayed amid disagreements in the cabinet over which technologies it will support, including a fierce battle for new nuclear power plants, with the finance ministry reluctant to invest large sums in costly projects. . An industry source said heavy energy users “did not expect anything” to help them with gas or electricity, the latter of which could cost up to 60% more than the price paid by European competitors. Earlier this month, Boris Johnson promised measures to “meet the needs of British steel, British ceramics and the entire British industry”, but Minister for Energy and Energy Kwasi Quarteng told lawmakers last week that the government had already take measures to support industry. companies facing rising costs. In a context of rising energy bills for strategically important companies and large construction companies, the energy-intensive industries told the Guardian that the mixed messages left them fearful of receiving little or no help. Richard Warren, a spokesman for UK Steel, said he “has long urged the government to reduce its political and regulatory controls over electricity bills, in line with action taken by governments elsewhere”. Simply renewing a compensation system that gives electricity-intensive industries a refund for the cost of the UK emissions trading system, but which expired on Friday, would only be a “partial solution”. UK Steel said the industry “needs full compensation for the cost of coal in electricity, an increase in the reduction of renewable energy contributions and similar reductions in grid costs, as already foreseen by the governments of France, Germany and Of the Netherlands “. Stephen Elliott, chief executive of the Chemical Industries Association, warned that prolonged high energy costs could lead to a reduction in factory output or to foreign companies relocating. “I can not stand in front of Kwasi Kwarteng and say that businesses will close for a week on Thursday, but I can not say that they will be viable and fully operational,” he said. “Things are getting narrower as our ability to convey costs to our customers becomes more and more difficult. “Our competitors in continental Europe are getting more relief [following the EU’s recent crisis framework enabling more state aid in this area]. “If we leave it at the moment when a chemical plant closes, restarting is a very difficult thing to do in terms of health and safety responsibly.” At the weekend, Transport Secretary Grant Shapps rejected calls from the UK to consider energy cuts as ministers explored ways to boost Britain’s resilience to international shocks in the aftermath of the Russian invasion of Ukraine. in record cost increase. Kwarteng told the Sunday Telegraph that nuclear power and offshore wind turbines would play a bigger role in energy production, with seven new nuclear power plants by 2050. Chemical companies use disproportionately large amounts of electricity in their processes. Inovyn, a chlorine manufacturer operating from a factory in Runcorn on the Merseyside, uses as much electricity as the nearby city of Liverpool. Eliot warned that some companies owned by foreign companies may reconsider their investment in the UK if nothing is done about energy prices. “If you were to ask investors in chemicals around the world, there are good reasons to come to the UK, but the downside has always been energy costs. Thus, the websites of foreign parents in the UK are always marked on this front and will be more and more. Please do not leave it until we close, because until then it is probably too late “. Eliot wrote to Chancellor Risi Sunak in March calling for more support for UK companies to pay for coal emissions, noting measures taken by European countries. The Guardian approached the government’s operations department for comment.
