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In short, renegotiation should enshrine the limits of EU competence in the Treaties, makingit clear how far the EU may legislate in the different policy areas and make it clear thatthe EU should not be granted any new powers. Energy UK in particular has stressed thatat the moment it does not see the need for policy decisions to be shifted to EU level andwants the member states to continue to decide their own energy mixes. 176 (It is pleasing tonote that, so far, the 2030 targets have only been set at an EU level and that there appearsto be no plan to renew national renewable energy targets.) The UK should also considernew safeguards against any future EU proposals which manage to circumvent these newrestrictions. 177Energy Policyand the EU176 Energy UK, Balance of Competences Review, 15 January 2014, found at 177 Please see Section 2 for historic examples54
Conclusion5The EU’s energy policy isn’t working and we are already paying the price for its failure.Over the last few years EU rules and regulations have played an increasing role in reducingBritain’s industrial output and in destroying jobs. As this paper has shown, if Energy IntensiveIndustries continue to leave Europe’s shores up to 1.5 million jobs could be lost in the UK.While protection or subsidy aren’t effective solutions, making sure that firms don’t have toalso face unnecessary and expensive regulation would go a long way toward reducing thepressure on them.A mounting number of investigations, including European Commission reports andGovernment studies, have highlighted the role of the EU in driving up the cost of energy.Changing this unfair status quo should be considered a matter of economic urgency;Britain’s Energy Intensive Industries are already starting to leave for cheaper shores.Action is needed as soon as possible. Requiring the Commission to consider the impact ofits proposals on British business, replacing the complex set of targets with one emissionstarget and making greater use of opt outs would help to reduce the burden on Britishbusinesses. These actions, along with new initiatives to promote cross border trade, shouldbe pursued as a matter of urgency.However, simply petitioning for minor changes in policy alone isn’t good enough; powersneed to return to the member states. Treaty change is needed to clarify the limits of the EU’srole, to make it clear that beyond setting emission targets (based on UNFCCC agreements)it is down to the member states to decide their own energy policy and their own energymix. A reformed EU needs to give the member states the ability to question current EUenergy policies and should also give them the right to look for cheaper and/or greeneralternatives.For too long opposition to EU energy policy has been dismissed by claims that the UKwould have introduced similar laws unilaterally. It is true that Britain may have introducedthe Renewables Obligation before it was required to by the EU but it also true that it hassince voiced opposition to retaining a renewable target. Under the current terms of EUmembership the UK has lost its freedom to change its policies. The UK is now stuck witha renewables target it opposes and laws that demand power stations close early, raisingserious concerns about energy security. Clearly, something needs to change.This paper does not attempt to claim that the EU is the only reason that energy priceshave increased over the last decade, however it is clear that the EU has played a significantand growing role in driving up the cost of energy. Restoring the power to block, amendor leave poorly designed EU laws to the member states will help address these problems.Such changes will help ensure that future EU energy policies take the needs of Britishindustry into greater consideration. In short, renegotiation offers an opportunity for theBritish Government to create savings, reduce the cost of energy and halt the exodus ofmanufacturing. It is an opportunity that should be grasped.55
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Business for Britain exists to give
Page 9: In a recent letter to the President
Page 14 and 15: in the US. While this would be conc
Page 16 and 17: This divergence is not confined to
Page 18 and 19: Commission has itself acknowledged
Page 20 and 21: 2.4The rising costs of EU energy re
Page 22 and 23: It is important to note that many o
Page 24 and 25: 3.1The impact of high energy costs
Page 26 and 27: MetalsTOTAL UK EMPLOYMENT471,000 in
Page 28: Chemicals and chemical productsTOTA
Page 31 and 32: INDUSTRY CASE STUDY 3.1.3Figure 14:
Page 39 and 40: “Energy discussions play a major
Page 41 and 42: were also closing faster than expec
Page 43 and 44: Increased energy dependence3.6Anoth
Page 45 and 46: Despite these problems, the EU’s
Page 47 and 48: 41 per cent of British manufacturer
Page 49 and 50: genuine, efficient and effective in
Page 51 and 52: The EU should also make it clear th
Page 53: should be considered: were the UK t
Page 57 and 58: Table 8: All energy Impact Assessme
Page 59 and 60: IA TitleImpact Assessment: Amendmen
Page 61: “Energy Policy and the EU is a ti
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