On Monday (2 April), the UK government unveiled its British Industry Supercharger, which is expected to be worth between £320 million and £410 million in total savings to heavy industry businesses next year.
The UK government’s Supercharger plan, first announced last year, aims to bring energy costs for key industries in line with other major economies, thereby levelling the playing field for UK businesses. Industries set to benefit from the scheme include steel, metals, chemicals, cement, glass and paper.
The Supercharger will waive costs for eligible firms related to renewable energy policies, including Feed in Tariff, Contracts for Difference and Renewables Obligation, as well as GB Capacity Market costs, as per the government.
There will also be a 60% reduction in network charges, defined as the costs industrial users pay for their electricity supply. Taken together, this support is expected to be worth around £24 to £31 per Megawatt Hour to the industry on average.
Kemi Badenoch, the UK’s Trade Secretary, said: “This government is backing British industry, and with this unprecedented energy support we’re levelling the playing field for hundreds of businesses in steel, chemicals and other key sectors.
“Energy-intensive industries are vital to our economy. The announcement today will ensure that the UK remains an attractive investment destination and support thousands of high-skilled jobs across the country.”
New measures to help ‘the competitiveness and decarbonisation of GB heavy industry’
Various members of heavy industry have welcomed the new measures. Specifically, the newly introduced measures will enable the country to be more competitive with countries abroad.
Arjan Geveke, director of the Energy Intensive Users Group, agreed with this stance, having said: “For those companies eligible for support, these measures will bring our industrial electricity prices closer to those in other countries and help the competitiveness and decarbonisation of energy intensive industries in Britain.”
Dr Diana Casey, executive director for Energy and Climate Change, Mineral Products Association, outlined the importance of the Supercharger package and how it could spur competitiveness.
“Competitive industrial electricity prices are absolutely critical for cement and lime producers to remain competitive as they transition to net zero especially as key technologies like carbon capture, usage and storage will significantly increase power demand,” Dr Casey said.
“We therefore welcome the British Industry Supercharger measures as a step forward in reducing the disparity in power prices between GB and those faced by competitors in Europe and beyond.”
