(Bloomberg) -- A group of U.K. manufacturers said its energy bills are set to soar this year, warning of potential closures, curbs in production and higher costs for consumers.
Net Zero North West -- a consortium of industrial firms in northwest England -- said in a statement that four of its members are facing a collective bill of as much as 1 billion pounds ($1.3 billion) this year, about 65% higher than in 2020.
That's “a staggering amount when you also consider inflation is also impacting costs across the board for businesses too,” said Carl Ennis, chairman of the group and chief executive officer of Siemens AG's U.K. and Ireland unit. “We need a net zero strategy that addresses the pressing need to support industries to decarbonize as well as secure our energy supplies.”
Europe is suffering from an energy-supply crunch driven largely by a shortage of natural gas that has caused power costs to spiral. Industrial firms have responded with a combination of shutdowns and production curtailments. The Net Zero North West coalition said consumers could see higher prices for food, medical supplies, construction and other products and services.
The continent's supply concerns have been further heightened by geopolitical tensions over Russia and Ukraine. Russian President Vladimir Putin has said he isn't planning a military invasion.
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