13 Mar Energy security delays could push manufacturers to the brink, warns Make UK
The MIA have partnered with Make UK on behalf of our members. Make UK is the largest force backing UK manufacturing and has been helping the sector to compete, innovate and grow for over 125 years.
Energy security delays could push manufacturers to the brink, warns Make UK
Manufacturers across the UK are already suffering with a “pile up” of commercial burdens, from hefty employment costs to rising business rates, and blockages of oil and ferrous supplies in Iran’s Strait of Hormuz could be the last straw for some businesses.
Make UK is pressing the Government to move quickly to secure energy prices, and to progress the Rosebank and Jackdaw developments – to help safeguard energy security and mitigate rising energy costs. The effective closure of the Strait of Hormuz has restricted oil and gas exports from the Middle East, prompting sharp price spikes. Oil surged to $118 – a six-year high – while UK gas prices soared last week, driven by major shutdowns at Qatari LNG terminals.
While 83% of manufacturers intend to invest in renewables, power supply uncertainties today are weighing them down. Industrial power prices in the UK are already the highest in the European continent, four times higher than in the US and 46% above the global average. Even accounting for the British Industrial Supercharger (BIS), the average price faced by UK energy intensive industries for 2024/25 is £66/MWh compared to the estimated German prices of £50/MWh and French prices of £43/MWh.
The new British Industrial Competitiveness Scheme (BICS) is expected to be rolled out in April 2027 to just 7,000 companies – Make UK argues it must be fairly rolled out in 2026 to all manufacturers to protect those impacted by expected bill rises.
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