A delegation of senior industry representatives led by The Packaging Federation has met with UK Treasury officials to discuss the current untenable position on wholesale gas and electricity price increases.
In common with most UK manufacturers, the sector has seen prices double since 2003, creating greater disparity with competitors in the rest of Europe.
Chief executive of the PF Ian Dent says: "Although the EC has made some pronouncements on 'serious malfunctions' in the EU energy markets, it does not intend to produce a final report until the end of 2006. This is too little too late – we want remedial action now!"
A briefing paper and action plan was presented to the Treasury. It calls for: an urgent review of UK energy policy to provide some interim financial relief mechanism to manufacturing based on energy efficiency measures and the UK Climate Change Levy provisions; examination into the supply infrastructure and financial arrangements for wholesale gas and electricity markets in the UK; impact assessment by the Treasury into the financial markets for emissions trading and the relative UK energy pricing mechanisms; and assessment of the future UK energy strategy in light of the recent EC statement that "co-existence of regulated and free market prices cause distortions".
| Contact |
| The Packaging Federation Tel: +44 (0) 207 808 7217 |
