Energy intensive industries compensation scheme
Read the full outcome
Detail of outcome
The initial response (published 20 May 2013) only covered questions relating to indirect EU ETS compensation. We were awaiting the European Commission鈥檚 state aid approval for the Carbon Price Support (CPS) scheme. We were also considering the inclusion of more sectors who came forward with evidence about their electricity-intensity.
The second government response document addresses responses to the CPS-related elements of the consultation. It explains the government鈥檚 approach to eligibility for the scheme following the Commission鈥檚 recent approval of the scheme, and its publication of its new environment and energy state aid guidelines.
We have also updated the energy intensive industries compensation guidance.
Original consultation
Consultation description
In his on 29 November 2011 the Chancellor announced the government鈥檚 intention to reduce the impact of policy on the costs of electricity for the most electricity-intensive industries. This would begin in 2013 and be worth around 拢250 million over the Spending Review period.
As part of this the government committed to compensate main electricity-intensive businesses to help offset the indirect cost of the and the , subject to state aid guidelines.
We published a proposal for consultation that sets out the eligibility and design of the scheme. The consultation closed on 21 December 2012. A stakeholder event during the consultation was held on 23 October 2012, to discuss the proposal in detail.
We have analysed the responses to the consultation and published this initial government response on the 20 May 2013. At the same time we published Guidelines for Applicants for the Compensation for the Indirect costs of EU Emissions Trading System in 2013 to 2014 and 2014 to 2015.
The Parliamentary Environmental Audit Committee (EAC) held an inquiry into the Energy Intensive Industries Compensation Scheme. Department for Business, Innovation & Skills (BIS) ministers attended an EAC hearing alongside BIS and Department of Energy & Climate Change officials on 4 December 2012. The EAC presented their findings in their report which was published on 4 January 2013. The government published its on 20 May 2013.
Email energyintensiveindustries@bis.gsi.gov.uk if you have any questions about the energy intensive industry compensation.
See also further information on energy intensive industries compensation.
Documents
Updates to this page
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Second government response published, addresses responses to the Carbon Price Support (CPS) related elements of the 2012 consultation.
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Government response published 20 May 2013
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First published.