The proposals include: guaranteeing price parity with Europe, matching compensation levels for network charges seen in France and Germany, and removing historic policy costs from electricity intensive industries.
The union group claims the measures could cut bills by £60 per megawatt hour, saving large energy users more than £1 million a year.
The total cost to the Treasury is estimated at £1.8 billion – but the TUC argues this would be offset by economic benefits and increased tax receipts.
TUC General Secretary Paul Nowak said:
“Energy powers industry. When energy costs are competitive, UK industry can thrive. But right now, British manufacturers face the highest industrial electricity prices in Europe. This puts them at a serious disadvantage — driving up production costs and putting jobs at risk across the country.
“We need decisive government action to level the playing field and give UK industry a fair chance to compete.
“The cost of inaction is far greater than the cost of support. Without intervention, firms will be pushed to the brink — and once they’re gone, they won’t come back.”
He added that forming GB Energy was the right thing to do.
“Years of failed privatisation and underinvestment has left the UK far too reliant on countries like Russia for our energy supply. The government is doing the right thing with the creation of Great British Energy. This will create new supplies of clean and affordable energy, owned by the British people. But it will take time, and manufacturers need affordable energy now.”
UK prices are inflated by the marginal pricing system, which means the cost of gas sets the price for all electricity, including cheaper renewables.
A lack of subsidies for network charges and historic levies on bills also keep costs higher than in EU states.
The TUC’s warning comes as key industrial sectors cite energy costs as one of the main barriers to growth, threatening jobs and long-term investment.
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