UK Metals Expo: The Leading Event for the Entire Metals Supply Chain
At the UK Metals Expo, Liam Conway, Co-Founder of Greenfields Energy Group, delivered a stark message about the cost of reaching net zero and the pressures facing metals businesses. While the transition is essential, the journey is proving to be more expensive, and more disruptive, than many anticipated.
The Cost of Net Zero
Net zero is not optional. But as Liam explained, the path to decarbonisation is being hampered by an ageing infrastructure and escalating energy costs. Estimates suggest the UK needs £80 billion of investment to modernise its grid and transmission systems. Without this, businesses risk being caught between rising costs and limited capacity to access renewable power.
Recent forecasts indicate transmission costs, typically buried in standing charges, could rise by over 100%. For some firms, this means hundreds of thousands of pounds added annually to their energy bills. One example cited was a company already paying £800,000 a year in energy bills, facing an extra £250,000 in standing charges from April 2024.
Uncertainty in Energy Contracts
Even businesses that believe they are protected under fixed contracts may be exposed. According to Liam, suppliers have already warned that the scale of increases is so extreme they may need to reopen supposedly “fixed” agreements. This level of uncertainty makes financial planning nearly impossible and creates real concern for companies operating on tight margins.
Bridging the Gap: From Policy to Reality
There is a fundamental disconnect between the policy narrative, that net zero will ultimately reduce costs, and the reality on the ground, where costs are climbing rapidly. For many metals businesses, these pressures threaten not just profitability but long-term survival.
The challenge, Liam argued, is making policymakers understand this lived experience. Numbers on a spreadsheet do not capture the consequences for businesses, their employees, and their communities.
Collective Advocacy
One practical solution discussed at the Expo is collective advocacy. Trade associations and councils are encouraging businesses to share real-life data on energy impacts and to communicate these challenges directly to policymakers. The panel highlighted initiatives such as:
Coordinated letters from businesses and employees to MPs.
Webinars with sector bodies
Sharing case studies that demonstrate the operational impact of rising costs.
These actions can help amplify the sector’s voice and ensure decision-makers understand the urgency of the situation.
A Critical Six Months Ahead
Liam closed with a sobering outlook: the next six months will be particularly challenging, especially for electricity costs. Without immediate action to address transmission charges and contract uncertainty, many businesses will face difficult conversations about their future viability.
The metals industry is committed to net zero, but it cannot do so alone. Government, suppliers, and policymakers must act to ensure the costs of transition are fair, manageable, and do not jeopardise the very businesses that will enable the UK’s sustainable future.
