LONDON, Feb 23 (Reuters) - The British government set
out plans on Thursday to help reduce electricity costs for
energy intensive industries from next year to ensure they can
remain internationally competitive.
The proposals would including exempting firms from certain
costs linked to renewable energy obligations and capacity market
costs, as well as exploring reductions on network charges paid
by industrial users for electricity supply, the government said.
It said the support would benefit around 300 businesses in
sectors such as steel, metals, chemicals and paper, employing
around 400,000 skilled workers.
"This is carefully crafted support that will mean
strategically-important UK industries like steel and chemicals
remain competitive on the world stage," Business and Trade
Secretary Kemi Badenoch said in a statement.
The government said the measures, which it will consult on
ahead of an expected roll out from Spring 2024, would bring the
energy costs of Britain's energy intensive industries in line
with those charged in the world's major economies.
Gareth Stace, Director General of industry body UK Steel,
said British industrial energy prices had been uncompetitive for
many years.
"We welcome this announcement and look forward to working
with government to ensure full price parity with European
competitors," he said. "It is essential we can compete on an
equal footing, in the short term, within the fiercely
competitive steel market, both in Europe and globally."
(Reporting by Kylie MacLellan; editing by Grant McCool)
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