Around 300 energy intensive UK companies including paper mills and metal forges are to get support to ensure they have a level playing field with global competitors.
The British Industry Supercharger has been announced by the Government and is targeted at companies that are exposed to high prices of electricity in sectors including steel, metals, chemicals and paper.
Under the proposed changes, that are likely to be implemented in Spring 2024, included firms will be exempt from paying renewable energy obligations such as the Feed-in Tariff, Contracts for Difference, the Renewables Obligation and GB Capacity Market costs. The Government will also explore reductions on network charges, which are the costs industrial users pay for their supply of electricity.
Business and Trade Secretary Kemi Badenoch said: “This is carefully crafted support that will mean strategically-important UK industries like steel and chemicals remain competitive on the world stage.
“We will back these businesses to keep on growing our economy and delivering high-quality jobs and investment into the UK, as well as the products we rely on for our everyday lives and work.”
Energy Intensive Users Group chair Dave Dalton added: “We welcome today’s announcement with the measures to reduce electricity prices for energy intensive industries. These measures will bring our industrial electricity prices more in line with those in other countries and help the competitiveness and decarbonisation of energy intensive industries in the UK.”