Plans to cut energy costs for thousands of businesses have been announced as part of the government’s long-awaited industrial strategy.
The announcement confirms Sky News reporting that the plan proposes making energy prices more competitive.
Firms have said high prices have hindered growth and made them less competitive.
Business Secretary Jonathan Reynolds told Sky News the issue of high electricity costs was “one of the biggest things business has asked of the new government”.
Commercial energy prices are the highest in the G7 group of industrialised nations – and Mr Reynolds said “that will fundamentally change with what we’re putting forward today”.
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Under the industrial strategy for 2025 to 2035, the government has said it plans to cut the bills of electricity-intensive manufacturers by up to £40 per megawatt hour – up to 25% – from 2027, which could benefit more than 7,000 businesses.
These savings will come by exempting them from certain levies on bills.
Roughly 500 of the most energy-intensive companies, such as the steel industry, chemicals and glassmaking industries, will also see their network charges cut.
The current 60% discount they get, via the British Industry Supercharger scheme, will increase to 90% from next year.
The government also said the energy measures would be funded through reforms to the energy system, without raising household bills or taxes.
The scope and eligibility for the scheme will be finalised after a consultation.
Mr Reynolds said it will be a threshold test based on the percentage of a company’s electricity cost as part of your overall output and will be targeted at the businesses which need it the most.
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