High energy usage firms in UK may get subsidies amid soaring costs
The UK government is considering plans to subsidise bills for energy-intensive industries such as steel and cement as companies face sharply rising electricity prices.
The government proposals, released on Friday, would also mean lower costs for firms in the paper, ceramics and glass sectors.
The plans would help about 300 businesses that support 60,000 jobs, the Department for Business, Energy and Industrial Strategy (BEIS) said.
The latest intervention follows further targeted government support for high energy usage firms in April, and comes amid soaring gas and electricity costs and the prospect of a lengthy recession.
If implemented, the support scheme would raise the exemption for businesses from certain environmental and policy costs from 85% to up to 100%.
The 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.”
BEIS said the scheme reflected the fact that UK companies faced higher industrial electricity prices than those in other European countries.
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It added that the higher prices could “hamper investment, competition and commercial viability” of those firms.
Gareth Stace, the director general of the industry body UK Steel, said the plans would provide relief in “extremely challenging circumstances”.
In a statement, he added: “While there remain difficulties,
Read more on theguardian.com
