Eurosceptic group, Business for Britain, has blamed Brussels for up to 9pc of costs on manufacturers’ energy bills.
A paper released by Business for Britain, an independent campaign, reveals that EU energy regulations will cost the UK economy between £86.6 billion and £93.2 billion (net).
According to Business for Britain, this will put 1.5 million jobs are at risk as a result of high energy prices.
The figures are drawn from an investigation of official government impact assessments and analysis of energy intensive industries particularly affected by high energy prices.
The position papers are a part of series of research designed to outline EU reforms that British businesses want from the forthcoming renegotiation.
The report identifies the impact of recent EU energy laws and suggests a different way of securing a transition to a greener economy.
According to Business for Britain, member states should be given the power to determine the appropriate energy mix to enable them to meet EU emissions targets, without subjecting firms to the burden of excessive regulations.
Key findings of the research include:
- Energy prices in the European Union are among the highest in the developed world. Medium sized industrial consumers in the EU pay around 20 per cent more for electricity than companies in China, about 65 per cent more than companies in India and more than twice as much as companies based in the US and Russia.
- Business for Britain research shows that the rising cost of energy threatens up to 1.5 million jobs in the energy intensive sector alone, with 363,000 of these jobs being at high risk .
- EU policies currently account for up to 9% of the cost of energy for Energy Intensive Industries. By 2030 this could rise to just under 16%.
- Were the UK to opt out of the Renewables Target alone, energy bills for Energy Intensive Industries could fall by up to 7 per cent.
- Detailed analysis of Government Impact Assessments (IAs) reveal that EU energy regulations will cost the UK economy between £86.6 billion and £93.2 billion (net).
The research does not dispute that UK policies have independently, driven up the cost of energy.
It does argue however, that by giving member states the freedom to change energy laws and have a greater say over how to implement directives, the EU can substantially reduce the cost burden faced by businesses across Europe and enable member states to design bespoke policies for their specific national needs.