British Industry Supercharger Boosts Competitiveness and Combat Carbon Leakage
Action is being taken by the UK government to empower its strategic energy-intensive industries, including the glass manufacturing industry. The government has unveiled the British Industry Supercharger, a comprehensive package of measures aimed at enhancing the competitiveness of British energy-intensive industries by addressing key areas within the energy system that contribute to higher electricity costs compared to international counterparts. For the UK glass industry, this is a key step in allowing for continued progress towards decarbonisation.
The British Industry Supercharger encompasses three strategic measures, designed to promote a more competitive and sustainable industrial sector:
Enhanced energy-intensive industries renewable levy exemption scheme: The government will increase the subsidy under the existing EII Renewable Levy Exemption scheme from 85% to 100% aid intensity.
Full indirect exemption from Capacity Market costs: Introduction of a full indirect exemption from the costs associated with the Capacity Market.
Energy-intensive industries Network Charging Compensation Scheme: A proposed compensation mechanism for the charges incurred by Energy-Intensive Industries when using the GB electricity grid through the EII Network Charging Compensation Scheme.
Dave Dalton, CEO of British Glass, says “This comprehensive set of measures is a demonstration of the government's efforts in supporting British industries, including the glass industry. Measures such as these are key in encouraging electrification and reducing carbon emissions in energy-intensive industries. The British Industry Supercharger is a key step forward in securing a sustainable future for the glass industry and helps us on our way to reaching our net-zero targets.”
