Tom Uppington, managing director of Alvance British Aluminium in Fort William, warned on Tuesday that the UK’s net‑zero agenda is driving up energy bills and taxes,making it harder for the country’s sole aluminium smelter to compete. he urged Energy Secretary Grant Shapps to rethink the transition’s cost to heavy industry as demand for aluminium surges amid the Iran‑related supply crunch.

Energy levy treats Scottish hydro‑power like coal, says Alvance chief

Uppington explained that the plant’s electricity, sourced largely from wind and a century‑old hydro system, is taxed using a UK‑wide carbon‑emissions metric that assumes coal‑level emissions. According to the report , this means the smelter pays the same levy as an Indonesian facility burning coal. The mismatch, he argues, inflates operating costs and discourages further capacity expansion.

Capacity utilisation climbs to 75% but higher bills threaten profit

Even after a jump from 68% to 75% utilisation, Alvance cannot raise output without incurring losses, Uppington said. The plant would need to purchase additional power at rates that would outwegh any revenue gains, a situation he attributes to the green levies and a £500,000 increase in employer national insurance contributions.

US tariffs give UK aluminium a narrow edge over rivals

Uppington noted that a 25% US tariff on British aluminium is lower than tariffs imposed on other exporters, offering a modest cmopetitive advantage. However,he warned that without relief from domestic energy costs, the advantage could evaporate as foreign producers face fewer green taxes.

What does “nimbyism” mean for the UK’s critical mineral strategy?

Uppington labelled the net‑zero poilcy a form of “nimbyism,” suggesting the government cares only that emissions stay out of the UK, not where they occur abroad. Make UK has warned that three smelters have closed since last autumn and that higher aluminium prices cannot offset soaring energy expenses, underscoring the risk to the sector deemed critical for defence, aerospace and EV production.

Who will decide if the British Industrial Competitiveness Scheme is back‑dated?

The trade body is pressing for the scheme, which could cut energy bills by up to 25%, to be applied retroactively for two years when it launches in April 2027. According to the source, the decision rests with the Department for Business and Trade and the Energy Secretary.