The UK’s Department for Business, Energy & Industrial Strategy has announced a new proposal to provide further relief for energy-intensive industries amid rising energy costs.
The government aims to increase the level of exemption for certain obligations and levies which are passed on to consumers through electricity bills within the scope of low-carbon support schemes, ranging from 85 percent up to 100 percent of costs under the energy-intensive industries exemption scheme.
Industrial electricity prices in the UK are higher than those of other countries including those in Europe, which could hamper investment and competition for hundreds of businesses in industries including steel and risk causing them to relocate from the UK. The proposal could make the UK an attractive region for industry to invest in by reducing industrial electricity costs.
According to the statement, the proposal would help around 300 businesses supporting 60,000 jobs in the UK’s industrial heartlands. Reducing the cost of doing business for key industries would help secure the future of domestic manufacturing and maintain a competitive business environment in the UK, ensuring economic growth and protecting thousands of jobs across the country.
The UK government has provided more than £2 billion to support businesses in energy-intensive sectors since 2013.
