The UK government aims to cut energy bills for large businesses by up to a quarter over four years, thanks to a £2 billion investment within its new industrial strategy. The aim is to make British manufacturers of steel, cars, chemicals, glass and other industrial sectors more competitive with foreign firms.
UK businesses pay some of the highest energy prices in Europe. Under the new scheme, roughly 7,000 energy-intensive businesses will be exempt from paying green levies on their electricity bills. These levies raise funds to support the deployment of renewable energy and to enact energy-efficiency measures like the insulation of low-income households.
The exemption should make it a bit easier for British companies to switch from fossil fuels to electricity by making the latter cheaper – an important step in the decarbonisation of the economy to tackle climate change. And it may lower costs enough to bring them within orbit of prices paid elsewhere in Europe.
