SMMT Demands Action Over Soaring Energy Bills     

British automotive manufacturers are calling for urgent action on spiralling costs as new analysis from the Society of Motor Manufacturers and Traders (SMMT) reveals firms face a £90 million uplift in energy bills this year – equivalent to more than 2,500 automotive jobs – as costs surge. 

UK electricity prices are the most expensive of any European automotive manufacturing country and 59% higher than the EU average, says the SMMT, meaning that last year, UK manufacturers could have saved almost £50 million on energy costs if they were buying in the EU rather than the UK.

The additional cost of producing vehicles and components in the UK is putting manufacturers at a competitive disadvantage, stalling momentum at the very time the sector needs to make massive investments to meet accelerated timescales for zero emission transformation.

Most of this investment, however, has been made by large manufacturers and, moreover, since March and war in Ukraine, energy prices have surged at the same time as battery producers and the sector must urgently accelerate and broaden this investment to SMEs across the supply base.