24th January 2024
The British Industry Supercharger was announced by the UK Government in February 2023. Delivery details for the scheme are still being consulted on but roll out is anticipated to begin this year and aims to reduce electricity costs for Energy Intensive Industries (EIIs) by £20/MWh by 2025. The Supercharger outlines support designed to boost the competitiveness of the country’s EIIs. It will exempt many UK businesses from the increasing costs associated with green obligations, such as capacity market costs, Feed-in-Tariff (FiT), Contracts for Difference (CfD), and the Renewables Obligation (RO). It is an ambitious and well-received initiative, aiming to address the challenge of ensuring UK businesses thrive in a globalised economy whilst meeting the commitments of a green future.
What are EIIs?
EIIs are industries that consume large amounts of energy in relation to their output, for example steel production or chemical plants. These industries are obviously vital to the UK economy, contributing significantly to jobs and our exports. However, their high consumption of energy leaves them more vulnerable to rising energy costs, thus putting them at a disadvantage in comparison to their competitors in countries who may have lower energy costs.
How it works
The new support addresses the challenges to UK business with a three-pronged approach:
As stated by Emma Jones, Chairwoman of the Federation of Small Businesses, ‘The Supercharger is a game-changer for UK industry. It provides the much-needed support to level the playing field and secure our competitive edge in the global market.’ In this comment Jones encapsulates the view that the Supercharger will help to revitalise British business and ensure they remain competitive on a global scale.
How Inenco can help your business
The British Industry Supercharger is not merely a financial incentive; it represents a strategic imperative for forward-thinking EIIs. Inenco has over 50 years of consultancy experience working in energy and utilities management; responding to the changing needs of our customers. This gives us the expertise and insight to help your business capitalise on the the new Supercharger, by identifying the specific exemptions and incentives applicable to your business, helping your business to achieve savings. Get in touch today to hear how we can help you 08451 46 36 26 or email enquiries@inenco.com.
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