£100m per year boost for energy intensive industries in UKStaff Writer | March 30, 2017
Regulations to save heavy electricity users like steel and chemical companies around £100 million a year in energy costs have been laid in the UK parliament.
Britain The support and certainty
The government expects the new measures to benefit over 130 eligible energy intensive companies across the UK in sectors including steel, chemicals, glass and cement.
The new measures will exempt these companies from a proportion of costs of the Contracts for Difference scheme, which is designed to encourage investment in low-carbon energy generation.
Contracts for Difference are won through a competitive process which drives down costs and guarantees companies a certain price for the low-carbon electricity they produce for a set number of years.
This gives them the support and certainty they need to attract investment and get projects off the ground.
The costs of funding the scheme are recovered through a levy on energy suppliers which is passed on to domestic and business energy bills.
This only makes up a minor part of most electricity bills, but has a more significant impact on those industries that use a lot of electricity.
The government committed in the Industrial Strategy green paper to minimise business costs and commission a review of the opportunities to reduce the cost of achieving our decarbonisation goals in the power and industrial sectors. ■