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in the US. While this would be concerning in its own right, what is even more concerningis that long term trends suggest that the UK has faced, and will continue to face, risingelectricity prices. This can be seen in the rise of British electricity prices (Figure 3) which havemore than doubled for non-domestic consumers in the last ten years and the price of gashas nearly doubled as well.Figure 3: Evolution of average electricity and gas prices for non-domesticconsumers in the UK in nominal terms (excluding climate change levy) 14The same trend is also seen when taxes such as the climate change levy are added(Figure 4) which shows that, again, both gas and electricity prices have nearly doubled.Figure 4: Evolution of average electricity and gas prices for non-domesticconsumers in the UK in nominal terms (including climate change levy) 14Energy Policyand the EU14 The Climate Change levy is a tax imposed on certain energy generating products, including coal and HM Government,Price of fuels purchased by non-domestic customers in the United Kingdom, data found at 14
The UK’s struggles are faced across the whole of the EU: according to the Commissionbetween 2005 and 2011 EU manufacturing saw the highest increase in energy costs relativeto the US, China and Japan. 15 According to Commission President Barroso, between 2005and 2012 the gas price for European industry increased by 35 per cent and the electricityprice increased by 38 per cent. In the US by contrast gas prices fell by 66 per cent andelectricity prices fell by 4 per cent. 16The marked difference can be seen in Figure 5 which shows the annual industrial gas pricesfor the UK and US between 2005 and 2011 and the rising gap that has emerged as US priceshave fallen while the UK’s prices have continued to rise.Figure 5: End user gas prices for industry 17And the same trend can be seen in electricity prices (Figure 6) where the UK’s prices haveincreased significantly while US prices have remained static.Figure 6: End-user electricity prices for industry 1815 European Commission Staff Working Document, Energy Prices and costs report, p.197, 17 March 2014, found at16 European Commission, Energy Priorities for Europe: Presentation of J.M. Barroso to the European Council, 22 May 2013, foundat 17 HM Government, International industrial energy prices – including taxes, data found at 18 HM Government, International industrial energy prices – including taxes, data found at 15
Page 2: Business for Britain exists to give
Page 9: In a recent letter to the President
Page 16 and 17: This divergence is not confined to
Page 18 and 19: Commission has itself acknowledged
Page 20 and 21: 2.4The rising costs of EU energy re
Page 22 and 23: It is important to note that many o
Page 24 and 25: 3.1The impact of high energy costs
Page 26 and 27: MetalsTOTAL UK EMPLOYMENT471,000 in
Page 28: Chemicals and chemical productsTOTA
Page 31 and 32: INDUSTRY CASE STUDY 3.1.3Figure 14:
Page 39 and 40: “Energy discussions play a major
Page 41 and 42: were also closing faster than expec
Page 43 and 44: Increased energy dependence3.6Anoth
Page 45 and 46: Despite these problems, the EU’s
Page 47 and 48: 41 per cent of British manufacturer
Page 49 and 50: genuine, efficient and effective in
Page 51 and 52: The EU should also make it clear th
Page 53 and 54: should be considered: were the UK t
Page 55 and 56: Conclusion5The EU’s energy policy
Page 57 and 58: Table 8: All energy Impact Assessme
Page 59 and 60: IA TitleImpact Assessment: Amendmen
Page 61: “Energy Policy and the EU is a ti

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