Carbon system 'causes business energy problems'

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Firms attempting to calculate their business energy requirements are being let down by the current carbon tax system, says Friends of the Earth.

The organisation believes the levy makes it difficult for companies to plan how much power they will use in a particular period.

Economy campaigner Simon Bullock explains: "All big industrial users of energy and electricity in Europe have a permit for however much carbon they use and that gives a very widely fluctuating price range."

As a result of this, he adds, many firms are unable to plan their business energy consumption in advance as purchase costs are almost always fluctuating, sometimes unpredictably.

A recent report from EEF, the manufacturer's organisation, concluded the UK government should do something about its "chaotic" carbon system.

The association even believes it causes manufacturers to become less competitive and does little to force companies to change their processes and become more eco-friendly.

Posted by Anne Yevel

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