By Daniel Hunter
Businesses seeking to bring down the cost of their electricity bills are encouraged to contribute to a new Government consultation launched this week over its proposed £250 million Energy Intensive Industries Package (EIIP).
Lasting for 11 weeks, the consultation will be used to gather views on proposals for the multi-million pound package, which aims to reduce the impact of energy and climate change policies on the cost of electricity for energy intensive industries. Industry and other interested parties are encouraged to comment on the proposals.
Business Secretary Vince Cable said:
“Rising electricity prices are a real concern for many businesses that see the issue as a barrier to growth. This is why we set aside up to £250 million in the Autumn Statement to offset some of the costs of energy and climate change policies for the most energy intensive industries.
“Many energy intensive businesses are located in areas that have been hit hard by the economic downturn, which is why it’s important that we get this right and present the best support package available.
“Following detailed consideration of the responses to this consultation, I will announce the proposed scheme for compensation in spring 2013, subject to state aid considerations from the European Commission.”
Government estimates predict that energy and climate change policies could add up to 28 per cent on average electricity prices paid by large energy intensive users in 2020.
Energy and Climate Change Secretary Edward Davey said:
“It is important we ensure that as we move to a low-carbon economy, those industries that are more energy-intensive are not forced to relocate to other countries. This would not only have a negative impact on our economy, but could also result in us exporting emissions to countries that are not as strongly committed to cutting carbon emissions.
“Compensating the most electro-intensive industries will benefit our economy by retaining vital jobs and preserving our manufacturing base, whilst enabling our industries to grow and transition to a green economy.”
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