The Government has today issued a call for evidence in support of the Energy Intensive Industries (EII) Package. The programme aims to reduce the impact of energy and climate change policies on the cost of electricity for those energy intensive industries whose international competitiveness is most affected by them.
Government estimates predict that energy and climate change policies may add up to 28 per cent in 2020 on average electricity prices paid by large energy intensive users.
Business Secretary Vince Cable said:
“The Government is committed to ensuring that manufacturing is able to remain competitive during the shift to a low carbon economy.
“The measures proposed in our EII Package will offer crucial support to energy intensive industries.”
Energy and Climate Change Secretary Edward Davey said:
“As we manage the transition to a cleaner energy mix, it’s important that we are alive to adverse impacts felt by energy intensive industries which face tough competition overseas.
“The evidence we are calling for today will help us to target the financial support we have available to those businesses that need it most.”
Through the EII Package, £250 million of direct financial assistance will be targeted to the most energy-intensive businesses whose competitiveness may be affected.
The call for evidence asks companies and trade bodies to share information and data about their energy-intensity in order to help Government target compensation effectively.
Once sufficient data is gathered, the Government will formulate policy, consulting in September this year, for implementation in Spring 2013, subject to state aid rules.
Notes to editors:
- Businesses interested in providing evidence are asked to visit www.bis.gov.uk/carbon-price-floor-compensation
- BIS's online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom for more information.