Business electricity users are likely to see their energy expenses increase significantly if the government goes ahead will plans to double the country's carbon tax.
This is the warning of EEF, the manufacturers' organisation, which said the unilateral levy will widen the gap between the UK and the rest of Europe, making the nation more uncompetitive.
It predicted industrial electricity prices will increase by between six and seven per cent due to the tax, on top of existing factors that affect the cost of energy.
Director of policy at EEF Steve Radley said: "The more government policies push up the cost of operating in the UK, the harder it will be for manufacturers to invest, create jobs and compete in global markets."
Recently, it was claimed by British Gas that many businesses may be paying more than necessary on electricity due to leaving electrical equipment and lighting on overnight.
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