Representing more than 200 manufacturers of fasteners, forgings, pressings, cold-rolled and sheet metal products, the trade association is urging businesses to quickly prepare for a staggering rise in non-commodity electricity costs with new Balancing Services Use of System (designed to balance the UK’s electricity system in real time) charges and R110-ET3.
The latter stands for ‘Revenue = Incentives + Innovation + Outputs’ and is Ofgem’s regulatory framework for energy networks, enabling it to generate funding to expand and modernise the electricity transmission network in support of net zero goals.
CBM President Stephen Morley said companies will also be hampered by the government’s Nuclear RAB ‘stealth tax’ that will fundamentally see firms help subsidise the build of Sizewell C.
Starting from November, this cost will appear as a levy on electricity bills for most companies, unless you are exempt under the Energy Intensive Industries scheme.
Many Confederation of British Metalforming members, such as hot forgers, sit outside of this support, despite being very big energy users. This is mainly due to their Standard Industrial Classification codes not being included, which is something the organisation is fighting hard to amend.
