High energy usage business support confirmed

High energy usage businesses, such as steel manufacturers and battery makers, are set to receive further support for electricity costs through the Energy Intensive Industries (EII) compensation scheme.

Details released today show the scheme will be extended for a further three years and its budget will be more than doubled.

UK Industry Minister Lee Rowley comments, ‘We want to keep the UK at the forefront of manufacturing, helping our energy intensive industries remain competitive and sustainable for the long term, and continuing to power our economy with thousands of jobs across the country.’

The scheme provides businesses with relief for the costs of the UK Emissions Trading Scheme (ETS) and Carbon Price Support mechanism in their electricity bills, recognising that UK industrial electricity prices are higher than those of other countries.

The scheme will now also provide support for companies that manufacture batteries for electric vehicles.

The government will also consider further measures to support business including increasing the renewable obligation exemption to 100%. Further details will be announced in the coming weeks.

UK Steel Director General Gareth Stace says, ‘The three-year extension of the EII compensation scheme and the increase in the level of relief provided by it delivers on a long-standing industry ask and gives the UK steel sector a much-needed reduction in electricity costs. This increase in compensation is a key priority for the steel sector and is a much-needed step to tackling the industrial electricity prices that hold the UK steel sector back from competing with our European counterparts.’

Read the government response to the consultation on EII compensation schemes.