Possible new relief for energy-intensive industries

High electricity using businesses, like steel and paper mills, could see further relief under new proposals to help subsidise their electricity costs.

The UK government is consulting on the option to increase the level of exemption from 85% of costs up to 100% for certain environmental and policy costs. The consultation closes on 16 September 2022.

This reflects higher UK industrial electricity prices than those of other countries, including in Europe. This could hamper investment, competition and commercial viability for hundreds of businesses in industries including steel, paper, glass, ceramics, and cement, and risk them relocating from the UK.

See: Government to consider further relief for energy intensive industries - GOV.UK (www.gov.uk)