London, 19 May 2023 – The Energy Intensive Users Group (EUIG) welcomes the Government’s decisions to improve the EII exemption schemes and proposal to exempt energy intensive industries (EIIs) from the capacity market charge.
Government’s decision to increase the current 85% to full relief from April next year is particularly welcome. It will reduce the industrial electricity price differential with other countries, thereby retaining British EIIs ability to compete internationally, safeguarding jobs and mitigating the risk of carbon leakage. Reducing industrial electricity prices will also encourage electrification of industrial processes which will help the UK to achieve its Net Zero target.
The EIUG also welcomes the proposals to exempt certain EIIs from the capacity market charge on industrial electricity prices and the administrative arrangements to deliver this. This exemption will reduce the industrial electricity price differential as well, especially as this charge has increased significantly in the past years and is likely to increase further in the future.
Dave Dalton, chair of the EIUG said; “We welcome the decision to improve the EII exemption schemes and the proposals to exempt certain energy intensive industries from the capacity market charge. These measures will bring our industrial electricity prices more in line with those in other countries and help the competitiveness and decarbonisation of energy intensive industries in the UK”.