The UK may be waving goodbye to Tata Steel and some other large industrial concerns as the government piles on more green costs, making it almost impossible for global businesses based there to compete.
Companies including Tata Steel Ltd. and GrowHow U.K. Ltd. may leave the U.K. as climate-protection policies boost electricity and natural-gas costs.
Factories will pay 18 percent to 141 percent more for gas, electricity and carbon-reduction programs by 2020, adding about 7 million pounds ($11 million) to the bill for a typical large energy consumer, the London-based Energy-Intensive Users Group and Britain’s Trades Union Congress said in a report on the impact of climate policy released today.
“The combined impact of the government’s climate change policies is imposing significant costs on the U.K.’s energy- intensive industries, and without urgent review could see some companies leaving the U.K. for good,” according to the report.
It’s the second report this month suggesting potential job losses in Britain because of climate policy.
Large industrial concerns are likely to quit Britain not just because of direct cost increases, but also because soon there just won’t be enough power available to them, thanks to a completely clueless Energy Minister:
…in the real world, the £100 billion-plus energy question that confronts us all in Britain today is how we are going to fill that massive, fast-looming gap in our electricity supplies when the antiquated power stations which currently supply us with two-fifths of the power needed to keep our economy running are forced to close.
The headline answer given by Mr Huhne is that we must build thousands more giant wind turbines.
As a 24-carat green ideologue, he is viscerally opposed to replacing the ageing nuclear and coal-fired plants which currently provide us with more than half our electricity.
Like Tony Blair and Gordon Brown before him, he dreams we can somehow fill that gap by erecting 6,000 wind turbines in the seas around Britain’s shores, and thousands more across many of the most beautiful parts of our countryside.
What is truly terrifying about Mr Huhne as our energy minister is that he seems so astonishingly ignorant about even the most basic principles of how electricity is produced.
He boasts about how the 3,000 wind turbines we have already built have the ‘capacity’ to generate 4.5 gigawatts of electricity.
Capacity is the crucial word here. As he could see from figures on his own department’s website, thanks to the fact that the wind blows only intermittently, the amount of power these windmills actually produce is barely a quarter of that.
In other words, the amount of electricity generated by all those turbines put together, at a cost of billions of pounds, is no more than that provided by a single medium-size conventional power station – equivalent to a mere two per cent of the electricity we need.
Good luck Britain, you’re going to need it.