TUC Congress 2013 Security of energy supply and energy intensive industries

TUC and the Green Economy

Congress 2013, Bournemouth, September 2013

Composite Motion 4 - Security of energy supply and energy intensive industries

Congress welcomes progress in creating an active industrial strategy for the UK but recognises that the level and coherence of government support for UK industry still falls far behind competitor countries such as Germany.

Congress is concerned that published government sector strategies consistently fail to consider how energy intensive industries or 'enabling sectors', such as steel, chemicals, cement, ceramics, glass and brick, could be supported to develop local supply chains for key sectors.

Congress notes that these energy intensive industries make up a fifth of manufacturing output and consume half of its energy needs and, therefore, recognises that how these industries are supported and regulated is fundamentally important to any overarching industrial strategy aimed at increasing manufacturing output.

Therefore Congress calls on the TUC to support, develop or promote:

i) Procurement policies that maximise opportunities for UK industrial supply chains and the inclusion of local content.

ii) Policies that deliver energy security for industry - particularly energy intensive industry - including the development and use of carbon capture and storage for industry.

iii) The production of a government sectoral strategy for energy intensive industries and recognition of the role of energy intensive industries in existing government sectoral industrial strategies.

Congress states the need for a secure, balanced energy mix together with the use of carbon capture and storage technology which will include coal if the lights are to be kept on.

The importance of the coal industry in power generation, especially in winter, is evidenced when more than 50 per cent of the UK's electricity is coming from coal-fired power stations.

The Energy Act 2011 introduced an obligation on Ofgem to provide the Secretary of State with a report assessing plausible electricity capacity margins and the risk to security of supply and the responsibility for the security of supply is with the government.

However, Ofgem has warned the government that spare electricity power production capacity could fall, increasing the risk of blackouts if the nation's energy demand remains at current levels.

Congress also notes that the closure of eight gigawatts of coal fired capacity, in accordance with the EU's Large Combustion Plant Directive, is continuing apace and that there is little evidence that the UK is providing the urgently needed investment and regulatory climate to ensure remaining coal stations can still run, and that new carbon capture coal stations are built. All of this is occurring when coal is the cheapest form of electricity generation and at a time when the indigenous coal industry in the UK is in crisis.

Congress notes with great concern the effects of the failure within 20 years of the politically motivated privatisation of the British coal industry. Thousands of direct and indirect highly skilled jobs have been lost which has brought about social and economic devastation to communities across Britain.

Privatisation has failed.

The possibility of Britain facing power shortages could significantly rise towards the middle of the decade as ageing power plants retire.

The UK has abundant indigenous coal reserves and only government intervention will secure a future for the UK coal industry.

The government is urged to take steps to protect the market for coal produced in this country to save employment, provide security of supply and provide the consumer with cheap, environmentally benign electricity.

Mover: Community

Seconder: National Union of Mineworkers

Supporter: British Association of Colliery Management - Technical, Energy and Administrative Management