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As energy costs continue to rise, the government is consulting of further relief for businesses worst affected, including steel, paper, glass, ceramics, and cement manufacturers.
The government is launching a consultation on plans to increase exemptions for certain environmental and policy costs from 85% of costs up to 100%. The decision follows April’s announcement to extend to the Energy Intensive Industries Compensation Scheme for a further three years amid rising energy costs. The increased subsidy would help around 300 businesses supporting 60,000 jobs in the UK’s industrial heartlands, as well as protecting UK buyers from associated price rises.
The compensation scheme provides businesses with relief for the costs of the UK Emissions Trading Scheme (ETS) and Carbon Price Support mechanism in their electricity bills.
Business Secretary Kwasi Kwarteng said:
“British manufacturers are the lifeblood of our economy and central to our plans to overcome this period of economic uncertainty.
“With global energy prices at record highs, it is essential we explore what more we can do to deliver a competitive future for those strategic industries so we can cut production costs and protect jobs across the UK.”
Director General of UK Steel Gareth Stace said:
“The publication of this consultation is a significant step forward in delivering competitive electricity prices for the UK steel sector and should provide some much-needed relief in the face of extremely challenging circumstances at the current time. While there remain difficulties, this announcement demonstrates that UK Government understands the challenges of British industry and continues to support steelmakers and steel communities across the country.”