Green Energy Cost: Taxpayers To Subsidise Heavy Industry
Heavy industry will be granted more relief from rising energy costs in an attempt to tackle the “clear and present danger” of job losses, Michael Fallon will pledge on Monday. The energy and business minister will admit that costs are undermining the UK’s competitiveness and that current compensation for manufacturers is failing to offset the growing burden of green levies on energy bills.
Manufacturers are calling for exemptions from paying the renewables obligation (RO), which subsidise green energy projects such as new wind farms. Photo: ALAMY
“Existing compensation and exemptions are not enough. We should look at relief from other policy costs,” Mr Fallon will say, indicating that further measures are likely to be unveiled in the Budget next week.
“Without further action on energy costs the competitiveness gap between Europe and the US is becoming unbridgeable,” he will warn.
The Chancellor, George Osborne, is expected to announce in the Budget a freeze of the UK’s unilateral carbon price floor, a rising tax on burning fossil fuels that is pushing up power prices for industry and consumers alike. However, a rumoured freeze at 2015-16 levels would still be almost quadruple present levels.