The Government is seeking views on revisions to the Energy Intensive Industries Exemption Scheme.
The new proposals aim to provide high electricity using businesses, such as steel and paper mills, further relief to fund their electricity expenses.
What could change?
Plans could raise the level of exemption for particular environmental and policy costs from 85 per cent to 100 per cent.
This reflects higher UK industrial electricity prices compared to other countries, including in Europe, which could hinder investment, competition and commercial sustainability for firms in a range of industries.
Who would benefit?
Approximately 300 businesses supporting 60,000 jobs in the UK’s industrial hubs would benefit from the proposals.
As well as protecting thousands of jobs across the country, these would help safeguard the future of domestic manufacturing and preserve a competitive business setting in the UK, prompting economic growth.
The Energy Intensive Industries Exemption Scheme offers businesses support for the costs of renewable levies in their energy bills, such as:
- Contracts for Difference
- The Renewable Obligation
- Feed in Tariffs.
Business Secretary, Kwasi Kwarteng, said:
“British manufacturers are the lifeblood of our economy and central to our plans to overcome this period of economic uncertainty.
“With global energy prices at record highs, it is essential we explore what more we can do to deliver a competitive future for those strategic industries so we can cut production costs and protect jobs across the UK.”
Since 2013, the Government has provided more than £2 billion to support businesses in energy intensive sectors with the price of electricity bills.
The unveiling of this new consultation follows the extension of the separate but similar Energy Intensive Industries Compensation Scheme for an additional three years, with the budget being more than doubled.
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