Energy Intensive Industries Support
By Anne Lewis-Schneider
Business and Energy Minister Michael Fallon has published his plans for electricity exemptions for energy intensive businesses in the UK. In this proposal Mr. Fallon aims for the reduction of the electricity bills of energy intensive industries, in a bid to level the playing fields and make business more competitive across the board.
Contracts for Difference have been brought in to give support to the low carbon generation of energy. In this move consultation has been instituted to exempt the most intensive industries from a proportion of their electricity costs. Contracts for Difference, in conjunction with Electricity Market Reform want to encourage investment in a long-term project that will stabilise the costs of low carbon electricity.
This is part of a government plan to give relief to the most electricity intensive industries in the UK. The package under consultation aims to set out what these exemptions will ultimately entail and is also looking for views from interested parties on criteria for the eligibility to receive these electricity cost reliefs.
Business and Energy Minister Michael Fallon has said that whilst reform in the industry aims to attract new investments, it is imperative that this does not undermine the competitiveness of UK industry. He went on to say that energy intensive manufacturing is central to strengthening the UK industrial base and for the rebalancing of the economy. Furthermore, Mr. Fallon stated that these industries employ significantly, and play an important role in the low carbon economy, through the products that they manufacture.
Contracts for Difference is part of a government initiative. Whilst seeking to reduce the costs for high intensity industry, it hopes to increase investment in low carbon electricity. The option that is recommended is to use criteria the EU Emissions Trading System, and Carbon Price Support, indirect costs compensation. The use of this option would address to exempt industries in the UK that are energy intensive in their manufacturing, with a total value to the tune of £50 billion in turnover, and would include the employment of 150 000 people.
Any interested parties, and those in the energy intensive industries, have been given encouragement to comment on the proposals in this package. As Minister of Business and Energy Mr.Fallon has said, it is vital that the competitiveness of UK businesses not be undermined in the implementation of this new energy infrastructure.
Head Office: EATON HOUSE, STATION ROAD, LEEDS, LS20 8XB Company Registration: 4704157 Vat Registration: 817013852