Help for energy-hungry firms

BRITAIN said last Friday (29) that it will extend financial support for energy-intensive businesses, like those in the chemicals, steel and paper sectors, to help them cope with surging electricity costs.

The scheme, which has helped high-energy usage industries since 2013, will be extended by three years, the Department for Business, Energy and Industrial Strategy said in a statement.

The budget will also be more than doubled according to the government, which has so far pumped more than £2 billion into the compensation scheme. “This will help ensure the UK remains an attractive investment destination for energy intensive industries, while

encouraging greater electrification to help cut emissions as part of the green industrial revolution across the country,” the statement added.

The plan will also be rolled out for companies that produce batteries for electric vehicles to help encourage the transition to cleaner and greener energy.

Britain is heavily dependent on natural gas for electricity generation. It has therefore been hit hard by rocketing prices after the invasion of Ukraine by key gas producer Russia.

Britain has vowed to become carbon net zero by 2050, but recently announced plans to drill for more North Sea fossil fuels as it seeks to secure energy independence and axe Russian imports.

Britain’s high-use energy firms have long called for more help, arguing that they are more exposed to runaway costs than international rivals, particularly in Europe.

The CBI business lobby last Friday welcomed news of the extra assistance, which also comes amid supply chain woes. “This move will provide some relief to energy intensive firms, which play a key role in the UK’s critical supply chains,” said Tom Thackray, CBI programme director for decarbonisation.

“Rising prices continue to weigh heavily on firms’ cashflow and production volumes, which are facing higher costs than their international counterparts. This compensation will go some way to closing that gap.”