Government announces further support for high energy usage businesses

• The Government has announced that it will extend its scheme to provide relief for high energy usage businesses.
• The Energy Intensive Industries Compensation Scheme will be extended by three years and the level of support it provides will increase, ensuring the UK remains a desirable location for energy intensive industries.
• This represents more than doubling of the current budget to support energy intensive industries.
• The scheme provides businesses with relief for the costs of the UK ETS and Carbon Price Support mechanism in their electricity bills.
• Since 2013, the scheme has provided more than £2 billion to support businesses in energy intensive sectors with the price of electricity bills.
• The Government recognises that UK industrial electricity prices are higher than those of other countries and today’s commitment will address this.
• Payments will be made to energy intensive businesses at the end of each quarter in the normal way.
• Full details of the scheme, including eligibility, will be published in due course.
• The Government will also consider further measures to support businesses, including increasing the renewable obligation exemption to 100%. Further details will be announced in due course.
• Industry Minister Lee Rowley has met with business groups representing energy intensive industries to discuss the scheme’s extension, including UK Steel, the Confederation of Paper Industries, the Mineral Products Association and British Glass.
• In response to this announcement UK Steel said “the increase in the level of relief provided by it delivers on a long-standing industry ask and provides a much-needed reduction in electricity costs”. You can read UK Steel’s response here.
• This is in addition to existing support through the £315m Industrial Energy Transformation Fund to help heavy industry cut bills and reduce emissions.
• Announcement comes as the Government unveils the British Energy Security Strategy.

Business Secretary Kwasi Kwarteng said:

“The UK is proudly home to a competitive manufacturing sector that supports well-paid jobs and drives economic growth. However, we know that high global energy prices are a concern for our most energy intensive sectors.

“To ensure our energy intensive industries remain competitive on the global stage, we are extending and increasing the budget of our Energy Intensive Industries Compensation Scheme.

“This package will ensure much needed relief for electricity costs remains in place to help protect British industry from volatile global gas markets.”

Read the latest issue of the OGV Energy magazine HERE