The UK Government has launched a ten-year plan to boost investment in its national industry through the reduction and exemption of green levies to reduce electricity prices for energy intensive companies. The new British Industrial Competitiveness Scheme plans to reduce electricity costs by up to GBP40/MWh (€47/MWh) for over 7,000 electricity-intensive businesses in manufacturing sectors (such as automotive, aerospace and chemicals). These businesses will benefit from exemptions paying green levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market. Other energy-intensive companies like steel, chemicals, and glass producers (about 500 eligible businesses) will also benefit from a 60% reduction on their electricity network charges through the British Industry Supercharger (to be raised to 90% from 2026). A public consultation is expected to take place shortly to determine the eligibility and extension of the exemptions.
Moreover, the government also plans to deliver a new Connections Accelerator Service to streamline grid access for major investment projects, expecting to prioritise those that create higher quality jobs and significant economic benefits.
The reforms are expected to complement the government's long-term mission for clean power, which aims to bring down energy prices to end the country's dependency on volatile fossil fuel markets. Electricity costs for electricity-intensive manufacturers should be slashed by up to 25% from 2027.
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