Industries To Be Shielded From Green Energy Costs As Household Bills To Soar
Energy-intensive industries will be shielded from subsidising new nuclear power plants and wind farms, under Government plans that will see other businesses and consumers paying billions of pounds more for electricity.
Ministers on Thursday unveiled the long-awaited Energy Bill, intended to encourage £110bn of investment in low-carbon generation this decade.
It will offer generators long-term contracts guaranteeing prices for electricity from new power plants – paid for through levies on electricity bills.
Government estimates show that these and other subsidies for low-carbon power will add £95 to household bills by 2020.
The cost to all energy consumers is likely to triple, up to cap set at £7.6bn a year by 2020 – with other ‘green’ policies adding yet more.
Industry and consumer groups have warned that the additional costs could plunge more households into ‘fuel poverty’, put some firms out of business and force industries to relocate overseas.
In an attempt to assuage fears, the Government will today unveil plans to exempt energy-intensive industries from additional costs arising from the new long-term electricity contracts.
Energy Secretary Ed Davey said: “Decarbonisation should not mean deindustrialisation. There would be no advantage in simply forcing UK businesses to relocate to other countries.”
Ministers are yet to specify which industries will be exempt, or how much money they will save.