Act now to avoid industry crisis, ECA warns Liz Truss

[edit] Priority

Leading electrotechnical and engineering services body ECA is urging new Prime Minister Liz Truss to support the sector and focus on prioritising skills, electrification and net zero.

The electrotechnical industry is key to upgrading Britain’s energy infrastructure. However, their work needs urgent Government support to survive the energy bills crisis.

[edit] Comment

Andrew Eldred, ECA Director of Workforce and Public Affairs, said:

“One of Liz Truss’ first orders of business as PM must be to bring down the cost of energy by supporting the transition to low cost, low carbon solutions. Our sector is leading the way in pivoting businesses to net zero energy saving solutions. But in an industry dominated by SMEs averaging 2.5 per cent profit margin and faced with more than 23 per cent inflation, the vast majority will struggle to cope with the latest energy price hikes adding to their own business overheads. Ms Truss must act now to support electrotechnical SMEs and avoid an industry crisis with severe knock-on effects across the construction supply chain, the likes of which we have not seen since the collapse of Carillion in 2018.”

[edit] Green levies

ECA is also urging Ms Truss to bring forward the review of Environmental and Social (green) levies on energy bills. The current levies mean electricity is taxed four times more than gas. Taxing both fuels equally could reduce domestic fuel bills by £100 per year.

This will also provide an immediate incentive to increase the electrification of the UK’s energy, heat and transport networks, bolster the UK’s decarbonisation efforts, and help us become more energy-independent and less vulnerable to price fluctuations.

[edit] Open letter

In an open letter backed by signatories including construction industry bodies BESA, BSRIA, FETA, MCS and SELECT, ECA has urged the Prime Minister to shift the balance of levies from electricity to gas, thereby encouraging a switch to electricity.

[edit] About ECA and its members

ECA is the UK’s largest trade association representing electrical, electrotechnical and other engineering contractors in England, Wales and Northern Ireland at regional, national and European level. ECA member-companies are rigorously assessed before membership is approved.

Member firms have a combined turnover in excess of £6 billion annually. Member firms carry out design, installation, inspection, testing, maintenance and monitoring activity across the domestic and commercial sectors. This ranges from power and lighting to data communications, to energy efficiency and renewables, as well as the design and installation of cutting-edge building control technologies.

ECA’s near 2,700 members range from SME electrical firms to nationwide engineering contractors and building services firms that employ thousands of professionals on major UK projects. ECA members also support over 5,000 apprentices annually.

For more information visit www.eca.co.uk

This article was sent as a press release by the Electrical Contractors Association, on September 5, entitled ‘Act now to avoid industry crisis, ECA warns Liz Truss’.

--Electrical Contractors Association

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