Monday, April 22, 2024

Energy-intensive industries expected to see cost reductions

Almost 400 businesses employing 400,000 skilled UK workers will benefit from lower costs from today thanks to the British Industry Supercharger today.

The Supercharger includes a series of targeted measures to bring energy costs for key industries in line with other major economies, levelling the playing field for UK businesses.

The support will be made available to sectors particularly exposed to the high cost of electricity including steel, metals, chemicals, cement, glass and paper, and is expected to be worth up to £410 million in savings to UK businesses next year.

The Supercharger’s measures will fully exempt eligible firms from certain costs linked to renewable energy policies, including the small-scale Feed in Tariff, Contracts for Difference and the Renewables Obligation.

There will also be a 60 percent reduction in network charges – the costs industrial users pay for their electricity supply.

Taken together, this support is expected to be worth up to an average £30 per Megawatt Hour with the most electricity-intensive industries such as steel benefiting the most.

This is the average estimated saving and will mean a British energy-intensive business ends up paying about the same in electricity costs as its competitors in countries in the EU.

Trade Secretary Kemi Badenoch said: “With this unprecedented energy support we’re levelling the playing field for hundreds of businesses in steel, chemicals and other key sectors.

“Energy-intensive industries are vital to our economy. The announcement today will ensure that the UK remains an attractive investment destination and support thousands of high-skilled jobs across the country.

“Putting energy-intensive industries on an equal footing with the world’s other major economies is crucial to helping these businesses remain internationally competitive.”

It will also enhance the UK’s appeal as a target for international investment as well as remove barriers on the road to greener technology and a sustainable net zero future.

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