Where should compensation for climate change policies go?

BIS is calling for evidence from businesses affected by rising energy prices as a result of climate change policies to help the Government target funds from the Energy Intensive Industries […]

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By Vicky Ellis

BIS is calling for evidence from businesses affected by rising energy prices as a result of climate change policies to help the Government target funds from the Energy Intensive Industries (EII) Package.

Last year it was announced energy intensive users will get a £250 million package from the Government to counter rising electricity bills. It is seen as compensation for the carbon price floor planned in the electricity market reform.

Some government estimates predict energy and climate change policies may add up to 28% on average electricity prices paid by large energy intensive users by 2020.

Business Secretary Vince Cable said the move would help British manufacturing firms remain “competitive”.

While Energy and Climate Change Secretary Ed Davey said: “It’s important that we are alive to adverse impacts felt by energy intensive industries which face tough competition overseas.

“The evidence we are calling for today will help us to target the financial support we have available to those businesses that need it most.”

Once the Government has enough information it will consult on policy in September this year and hopes to put this into practice in Spring 2013.

Businesses interested in providing evidence are asked to visit www.bis.gov.uk/carbon-price-floor-compensation