Energy intensive industries compensation scheme
Consults on compensating main electricity-intensive business to help offset indirect costs of Carbon Price Floor and EU Emissions Trading System.
In his Autumn Statement on 29 November 2011 the Chancellor announced the government’s intention to reduce the impact of policy on the costs of electricity for the most electricity-intensive industries. This would begin in 2013 and be worth around £250 million over the Spending Review period.
As part of this the government committed to compensate main electricity-intensive businesses to help offset the indirect cost of the Carbon Price Floor and the EU Emissions Trading System, subject to state aid guidelines.
We published a proposal for consultation that sets out the eligibility and design of the scheme. The consultation closed on 21 December 2012. A stakeholder event during the consultation was held on 23 October 2012, to discuss the proposal in detail.
We have analysed the responses to the consultation and published this initial government response on the 20 May 2013. At the same time we published Guidelines for Applicants for the Compensation for the Indirect costs of EU Emissions Trading System in 2013 to 2014 and 2014 to 2015.
The Parliamentary Environmental Audit Committee (EAC) held an inquiry into the Energy Intensive Industries Compensation Scheme. Department for Business, Innovation & Skills (BIS) ministers attended an EAC hearing alongside BIS and Department of Energy & Climate Change officials on 4 December 2012. The EAC presented their findings in their report which was published on 4 January 2013. The government published its Response to the Committee on 20 May 2013.
Email energyintensiveindustries@bis.gsi.gov.uk if you have any questions about the energy intensive industry compensation.
See also further information on energy intensive industries compensation.