Factories have raised alarms about potential job losses and closures if proposed changes to electricity pricing go ahead.
The suggested reform, known as zonal pricing, would create varying electricity costs across the UK, potentially making power more expensive in areas further from renewable energy sources.
Manufacturers, represented by the industry lobby group Make UK, have argued that this pricing model could force energy intensive industries, like steel production, to shut down or relocate.
They caution that such a move might prompt companies to consider relocating abroad if they find more cost-effective options.
Currently, the UK electricity market operates under a single wholesale price.
A government spokesperson told Energy Live News: “In an unstable world, the only way to guarantee our energy security and protect consumers from future energy price shocks is by moving towards homegrown power.
“We are reviewing responses to the consultation on reforming electricity markets, ensuring we focus on protecting billpayers.
“And our new industrial strategy will deliver long-term, sustainable growth right across the UK by supporting our industries and driving private investment into our economy.”
