Businesses impacted by rising energy prices will have the opportunity to provide information and data that will shape a £250 million Government scheme aimed at alleviating their electricity bills.
The Government has 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.”
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 is asking 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.
Businesses interested in providing evidence are asked to visit www.bis.gov.uk/carbon-price-floor-compensation. Deadline for submission of responses is 4th May 2012.
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