Green levies reduced for 130 energy intensive firms
The UK Government has announced heavy electricity users such as steel, glass and cement companies will be exempted from some of the costs associated with green energy policies.
That’s expected to help 130 eligible businesses save around £100 million a year.
The new rules cover the Contracts for Difference (CfD) scheme – designed to encourage investment in low carbon generation.
The costs of funding the scheme are recovered through a levy on energy suppliers, which is passed on to domestic and business bills.
The government says 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 power.
It adds although energy costs on average account for 3% of UK business expenditure, there are 15 sectors where it reaches 10%.
The announcement is part of the government’s Industrial Strategy, where it committed to minimise business costs and commission a review of the opportunities to cut the cost of achieving the nation’s decarbonisation goals in the power and industrial sectors.
Energy Minister Jesse Norman said: “We want the UK to be one of the best places in the world to build and grow a business and that means creating the right conditions for companies to thrive and succeed.
“These industries are worth £52 billion to the UK economy, support 600,000 jobs and produce essential products that people use every day. That is why we have taken this action to support them.”