Member Article

Electricity costs to be compensated by £250m package

Green-minded businesses have been urged to put views forward for a Government consultation which will decide how a £250m package for energy industries will be spent.

The consultation, lasting 11 weeks, will ask companies hoping to reduce electricity bills for their opinions on proposals for the Energy Intensive Industries Package (EIIP).

Interested parties and industry heads are being urged to comment on Government proposals which aim to reduce the effects of climate change and energy measures on electricity costs.

Business Secretary, Vince Cable, commented: “Rising electricity prices are a real concern for many businesses that see the issue as a barrier to growth.

“This is why we set aside up to £250 million in the Autumn Statement to offset some of the costs of energy and climate change policies for the most energy intensive industries.”

Mr Cable will announce a compensation scheme in Spring 2013 for businesses hit by energy costs after he has considered the views gathered by the consultation.

The Government predicts a 28% rise in average electricity prices for large energy intensive users in 2020.

Edward Davey, the Energy and Climate Change Secretary said: “It is important we ensure that as we move to a low-carbon economy, those industries that are more energy-intensive are not forced to relocate to other countries.

“This would not only have a negative impact on our economy, but could also result in us exporting emissions to countries that are not as strongly committed to cutting carbon emissions.

“Compensating the most electro-intensive industries will benefit our economy by retaining vital jobs and preserving our manufacturing base, whilst enabling our industries to grow and transition to a green economy.”

This was posted in Bdaily's Members' News section by Miranda Dobson .