The current energy crisis is the biggest issue faced by manufacturers today. The latest crisis threatens to shut down 13% of manufacturers in the UK . The Government recognised this threat and has introduced the Energy Bill Relief Scheme until April and the Energy Bill Discount Scheme from April to April 2024, with particular provisions for the most energy intensive industries. The EIUG has welcomed the later, though pointed out that it falls short of relief schemes offered by some other European countries.
In its Energy Security Strategy, the government recognised that UK industrial electricity prices are higher than those of other countries and that will act to address this. The EIUG therefore calls on Government to introduce other measures, besides compensation for the indirect emission cost due the carbon pricing announced in the Strategy, to support EIIs including;
- publishing the Government response to the review of the EII renewable exemption scheme and implement to proposal to increase the renewable obligation exemption to 100%;
- introducing a similar network charge reductions for EIIs in the UK as some other European countries offer;
- removing the carbon price support mechanism – a unilateral carbon tax on top of the UK ETS – through the review as announced in the Autumn Statement last year.
- supporting the Skidmore Review’s recommendation to extend the Industrial Energy Transformation Fund (IETF) with £185 million to bring it in line with the Conservative Manifesto;
- calling on Government to develop a similar business model for industrial electrification as it has been developing for hydrogen and CCUS deployment.