The government has announced it will extend a scheme designed to help high energy usage businesses tackle soaring energy prices.
The ‘Energy Intensive Industries Compensation Scheme’ will be stretched by three years and the level of support it provides will increase.
This represents more than a doubling of the current budget to support energy intensive industries, the Department for Business, Energy and Industrial Strategy has said.
The scheme provides businesses with relief from the costs of the UK Emissions Trading Scheme and the Carbon Price Support mechanism in their electricity bills.
The government’s response follows calls from energy-intensive industries for more support amid the energy crisis.
A few months ago, a report by the trade association UK Steel suggested manufacturers had to pay nearly 61% more for electricity than their counterparts in Germany and almost 51% more than in France.
It said full details of the Energy Intensive Industries Compensation Scheme will be published soon.
Business Secretary Kwasi Kwarteng said: “To ensure our energy-intensive industries remain competitive on the global stage, we are extending and increasing the budget of our Energy Intensive Industries Compensation Scheme.
“This package will ensure much-needed relief for electricity costs remains in place to help protect British industry from volatile global gas markets.”