Under the 10-year roadmap, more than 7,000 companies operating in electricity-intensive sectors will be able to save up to 25% on their energy bills by 2027.
It was reported that the supports to be implemented within the framework of the British Industrial Competitiveness Plan are aimed at companies in energy-intensive sectors such as automotive, aerospace and chemicals. The government will introduce a new exemption system that will reduce the electricity prices of these companies by about 40 pounds per megawatt-hour (MWh).
Approximately 500 companies operating in sectors such as steel, glass and ceramics will receive a 60% discount on network charges, which will be increased to 90% from 2026. It was stated that this practice will provide millions of pounds of energy cost advantage per company per year.
In the statement, it was noted that exemptions will also be introduced in items such as renewable energy obligation, feed-in tariffs and capacity market. In total, these changes are expected to reduce eligible businesses' electricity bills by GBP 43 per MWh.
UK Prime Minister Keir Starmer stated: "This Industrial Strategy is a landmark step forward for the UK's long-term economic growth. We are taking a strong step forward to reduce energy costs, one of the biggest barriers facing our industry."
Gareth Stace, Director General of UK Steel, stated that they welcomed the new regulations and stated, "Electricity costs have been weakening the competitiveness of the steel industry for a long time. This step will provide significant relief for our industry."
It was stated that the announced strategy includes a wide reform package including digitalization in the industry, skills development, clean energy investments and R&D spending. With the full implementation of the strategy, it is aimed to create 1.1 million qualified jobs across the UK.
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