In the wake of the threatened closure of cokemaking at British Steel in Scunthorpe comes news that hundreds of businesses across the UK – including British Steel – are set to benefit from reductions in energy costs under a proposed new Government scheme.
The move – designed to support competitiveness and decarbonisation of energy intensive industries – has been welcomed by Cllr Rob Waltham, leader of North Lincolnshire Council.
In total, 300 businesses across the UK will benefit from the British Industry Supercharger, which will target measures to ensure energy costs for key UK industries are in line with other major economies around the world – levelling the playing field for British companies across Europe.
Cllr Waltham said: “There is a clear commitment to backing British business, particular those industries which have a strategic importance such as British Steel. Global inflation continues to be a challenge and a major factor in that is high energy prices brought on by the war in Ukraine – it continues to have an impact on families and businesses alike.
“These measures have been welcomed by trade bodies and I welcome them too. Clearly there is an immediate need to support the workers potentially affected by the recent announcement from British Steel but these measures should give greater certainty and sustainability to energy intensive industry.”
The Government announced the support – set to be consulted on in the spring – will be made available to sectors particularly exposed to the cost of electricity, such as steel, metals, chemicals and paper.
These industries employ around 400,000 skilled workers across the UK, and support many more in supply chains. In 2019, their exports made up around 28 per cent of total UK exports.
Proposed changes under the Supercharger will exempt firms from the certain costs arising from renewable energy obligations such as the Feed in Tariff, Contracts for Difference and the Renewables Obligation, as well as GB Capacity Market costs, whilst exploring reductions on network charges, which are the costs industrial users pay for their supply of electricity.
