Further government support announced for energy-intensive industries

The UK government has announced a three-year extension to its Energy Intensive Industries Compensation Scheme, which seeks to support energy-intensive industries during a period of high energy costs by compensating them for those higher costs derived from the UK’s Carbon Price Support mechanism and Emissions Trading Scheme (ETS).

The scheme had been due to end in March, but it has now had its budget doubled in addition to the extension. The government believes the scheme will help keep energy-intensive industries in the country competitive, while still encouraging further electrification in order to reduce emissions.

In a statement, Gareth Stace, the Director General of UK Steel, said that extending the compensation scheme and increasing the relief it provides met a key desire of industry, adding that it:

“Gives the UK steel sector a much-needed reduction in electricity costs. This increase in compensation is a key priority for the steel sector and is a much-needed step to tackling the industrial electricity prices that hold the UK steel sector back from competing with our European counterparts.”

OakTree Power’s Chief Executive, Chantel Scheepers, was more critical, however, pointing out that the scheme did not address consumption and was therefore unsustainable. She said the best electricity is the electricity that is either not used or used when it is cheaper.

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Industrial Lubricant
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