BPI Warns Green Energy Costs Are Deterring UK Investment
Executives at British Polythene Industries have warned high energy costs in the UK are putting the company off making major capital investments in its domestic market. Chief executive John Langlands blamed subsidies for green energy projects as a large factor in the soaring energy bills the company is facing.
He said the funding of these initiatives is coming at a major cost to industrial businesses.
He said: “It is coming to the point where if you project it forward half the cost of the electricity bill, this applies to domestic as well as business consumer, will be to government choice in regulation rather than the raw cost of power.
“It is becoming very, very expensive. These green initiatives are not cheap and they are coming at a cost to British industry.
“It is not how you run an industrial country if you want to think [to the future].”
Statistics from the Department for Energy and Climate Change show average UK industrial electricity prices in the UK for 2012 were the fourth highest in the G7 while gas prices were the third lowest.
When asked on what ways BPI could try to mitigate its energy costs in the UK Mr Langlands said: “You can move capacity to areas where power is a bit cheaper.”
That view was echoed by chairman Cameron McLatchie who confirmed the Greenock-company was making much of its £20 million investment this year in Europe, Asia and North America as operating costs in those areas are cheaper.
He said: “We are investing in new capacity in Belgium and replacement capacity in Canada.
“The last area we will probably invest in this year is Xinhui in China. So you can see our strategic projects are very clearly being done outside the UK.”