Industry groups are urging the UK government to reform energy taxes that inflate electricity bills, warning the current system is harming manufacturers and slowing the shift to clean heating.
Make UK said industrial firms are paying energy prices 46% above the global average, threatening investment and driving de-industrialisation. It proposed a government-backed fixed energy price scheme to protect manufacturers from volatile wholesale markets.
Energy UK, representing suppliers, also called for levies to be shifted from electricity to gas bills, arguing this would make electric heating cheaper and cut household costs by £400 a year.
The move could reduce the cost of decarbonising home heating by £40 billion by 2040.
The government said it is already acting to reduce industrial energy costs through its £5 billion British Industry Supercharger programme.