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British Industry Supercharger (BIS) : A Boost for Energy Intensive Industries

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The UK government has unveiled the British Industry Supercharger (BIS), a set of initiatives designed to reduce energy costs for key energy intensive industries such as manufacturers in steel, metals, and chemicals. This move aims to make British businesses more competitive on the global stage and safeguard hundreds of thousands of jobs.

Why the British Industry Supercharger?

The global energy market is a competitive landscape, and British industries face higher energy costs compared to some European counterparts. This puts them at a disadvantage when it comes to attracting investment and securing contracts. The BIS aims to level the playing field by significantly reducing the energy burden on these strategic industries.

What is the British Industry Supercharger?

The BIS is a three-pronged approach:
  • Renewable Levy Relief

    Businesses will receive a 100% exemption from the existing EII Renewable Levy, translating to a cost reduction of around £5 per megawatt hour (MWh).

  • Capacity Market Charges Exemption

    Energy intensive industries will be completely exempt from the costs associated with the UK Capacity Market, resulting in another estimated £5/MWh saving.

  • Network Charging Cost Compensation (planned):

    This scheme, currently under development, is expected to further reduce electricity costs by £10/MWh by compensating businesses for a portion of the grid usage charges.

The Benefits of the British Industry Supercharger

The BIS is anticipated to bring a range of positive outcomes:
  • Cost Savings

    The initiative is expected to deliver annual savings of £320 million to £410 million for these energy intensive industries by 2025.

  • Enhanced Competitiveness

    Lower energy costs will make British businesses more competitive in the international market, attracting investment and boosting exports.

  • Secured Jobs

    The initiative aims to prevent job losses in these crucial sectors, safeguarding the livelihoods of approximately 400,000 skilled workers.

  • Sustainable Growth

    By supporting these energy intensive industries, the UK government is taking a step towards a more sustainable future, as some of these sectors, like steel production, are actively working to decarbonise their operations.

The Road Ahead For Energy Intensive Industries

The British Industry Supercharger is a significant step towards strengthening the UK’s industrial base. While the Network Charging Compensation Scheme is still under development, the initial measures offer a much-needed boost to key sectors. As these industries thrive under reduced energy costs, the UK economy can expect to reap the benefits of increased competitiveness, job security, and sustainable growth.

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