Rising business energy costs could lead to some firms looking into the possibility of moving their operations overseas, it has been claimed.
Coming as the Celanese Acetate factory in Spondon, Derbyshire, has closed, with its bosses citing high energy costs as one factor in its demise, a business group has warned that many more closures could follow if firms aren't able to gain access to affordable gas and electricity.
Furthermore, according to the Energy Intensive Users Group, which represents companies operating largely in the manufacturing sector, overseas firms are likely to be put off from setting up operations in the UK due to the high cost of business energy supplies.
"Contrary to popular belief, we've not lost all of our manufacturing industries," Julian Nicholson, a director at the lobbying group, explained to the Derby Telegraph.
"They have become much more labour-productive and more efficient to survive but cannot do anything about uncompetitive energy prices
He added that he fears business energy costs could rise by a further 60 or 70 per cent over the next few years, spelling bad news for those firms already struggling to pay for their power.
Just recently, the Confederation of British Industry (CBI) warned that 14 UK power stations could be forced to close as a result of the proposed European Union Industrial Emissions Directive, aimed at reducing carbon emissions across the continent.
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