Industrial Strategy: More energy intensive firms to be exempt from policy costs?


More energy intensive firms could be exempted from energy policy costs, depending on the outcome of a consultation promised in the government’s Industrial Strategy, published today.

Currently, a small number of the largest industrial companies are able to avoid paying for government policy costs such as the contract for difference scheme, which are added to everyone else’s bills.

Exempting those firms is intended to safeguard UK jobs and production of energy intensive materials such as steel.

However, many other energy intensives believe they are being placed at a competitive disadvantage by paying higher prices for energy compared with manufacturers in other countries. Today’s announcement appears to have given them little to cheer about.

Laura Cohen, chief executive of the British Ceramic Federation, said the lobby group was “disappointed not to see clearer proposals to benefit UK competitiveness on energy for ceramics and other energy intensive industries”.

She added: “We are also disappointed that government is unable to take forward, at this stage, our proposals for a ceramic sector deal.”

Elsewhere, the Industrial Strategy reiterated government’s intention to develop a new scheme to encourage energy efficiency investment by large firms, as outlined in the clean growth plan, published last month.

The government also promised to consult next year on ‘a package of measures to support businesses to further improve their energy productivity.’

See the Industrial Strategy here (p160 for energy efficiency/exemptions).

Related stories:

Energy intensives urge government to broaden renewables cost protection

Clean growth plan asks firms to increase energy productivity by 20%

May moots industrial energy efficiency scheme

Energy efficiency: Bring public sector into Esos and hold directors to account

UK firms paying highest power prices in Europe

Government ‘should incentivise energy efficiency over renewables’

Policymakers must unlock economic benefits of storage, flexibility and efficiency

Energy Institute: Policymakers should prioritise ‘poor child’ energy efficiency

Energy Institute urges retrofits and equipment upgrades to make quickest efficiency gains

Engineers tell government to pay for energy efficiency

Government should subsidise energy efficiency over renewables and give Esos teeth

Esos and the slow death of energy management

M&S boss: There is more low hanging energy efficiency fruit than ever

Ofgem: Energy flexibility will become more valuable than energy efficiency

Renewable heat subsidy schemes ‘wasting money’ by ruling out waste heat

Eon calls for energy efficiency push

National Grid boss: future of energy is demand not supply

Click here to see if you qualify for a free subscription to the print magazine, or to renew.


Please enter your comment!
Please enter your name here