Today: Wednesday, 1 February 2023 year

60% of factories in the UK may close due to rising electricity prices

60% of factories in the UK may close due to rising electricity prices

Six out of ten factories in the UK may be closed due to rising electricity prices, according to the federation of British manufacturers MakeUK. According to the organization, the current decline in the manufacturing sector may worsen in the future if the government does not take measures to support enterprises.

“The current crisis is putting businesses in front of a stark choice… Curtail production or shut down the shop altogether if help doesn’t arrive soon,” the MakeUK report says.

Last week, the UK Gas and Electricity Markets Authority announced an increase in the electricity and gas bill cap by 80% for households. Consulting company Cornwall Insight predicts that in the first quarter of 2023, the maximum amount of accounts will continue to grow and reach £5.34 thousand per year by the middle of the year (compared to the current £1.97 thousand).