# Britain considers energy bill subsidy for industrial firms
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Proposes Subsidies for Energy-Intensive Industries Amid
Meta Description: Britain plans to subsidise power bills for industries like steel and cement facing soaring energy costs. Consultation underway to raise support scheme to 100%.
URL: https://financedigest.com/britain-considers-energy-bill-subsidy-for-industrial-firmshtml

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LONDON (Reuters) -Britain is considering plans to subsidise power bills for energy intensive industries such as steel and cement, in an effort to support hundreds of businesses facing record high energy prices.

The move comes weeks before a new prime minister is due to take office, with forecasts of a long recession and soaring inflation — spurred mainly by rising energy prices — dominating the political agenda.

The government said on Friday it has launched a consultation into a support scheme that could raise the exemption for businesses from certain environmental and policy costs from 85% of costs up to 100%.

With global energy prices at record highs, it is essential we explore what more we can do to deliver a competitive future for those strategic [industries so we can cut production costs and protect jobs](https://www.financedigest.com/best-paying-jobs-in-industrial-specialties.html "Best paying jobs in industrial specialties") across the UK,” business minister Kwasi Kwarteng said in a statement.

The plans, which could help some 300 [businesses that support](https://www.financedigest.com/uks-sunak-to-halve-support-that-helps-businesses-pay-fuel-bills-the-times.html "UK’s Sunak to halve support that helps businesses pay fuel bills -The Times") 60,000 jobs, reflect Britain’s higher industrial electricity prices compared with those elsewhere in Europe, the department for business, energy and industrial strategy said.

British wholesale gas [prices remain elevated after hitting record](https://www.financedigest.com/world-food-prices-hit-record-high-in-2022.html "World food prices hit record high in 2022") highs following Russia’s invasion of Ukraine.

The steel industry welcomed the proposals, calling the consultation a “significant step” that should [provide much needed relief](https://www.financedigest.com/recovery-bus-provides-cool-relief-for-s-koreas-covid-19-testers.html "‘Recovery bus’ provides cool relief for S.Korea’s COVID-19 testers") amid “extremely challenging circumstances.

[“Launching this consultation now provides](https://www.financedigest.com/newly-launched-quintessential-to-provide-prestige-living-management-platform-for-prs.html "Newly launched Quintessential to provide ‘prestige living’ management platform for PRS") the future Government with the option to introduce this scheme given current high electricity prices,” Gareth Stace, director general of industry body UK Steel, said in a statement.

The consultation comes four months after the government extended by three years a compensation scheme that [provided high energy-using businesses support](https://www.financedigest.com/keysource-to-provide-critical-facilitiesmanagement-support-for-leeds-city-council.html "KEYSOURCE TO PROVIDE CRITICAL FACILITIESMANAGEMENT SUPPORT FOR LEEDS CITY COUNCIL") for electricity costs.

(Reporting by Farouq Suleiman and Sachin Ravikumar; editing by William James)


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