Energy Intensive Industries: Energy
The question
To ask the Chancellor of the Exchequer, what plans she has to (a) abolish the Carbon Price Support mechanism and (b) introduce further measures to reduce electricity costs for energy-intensive industries.
Answered by Dan Tomlinson
The government’s Industrial Strategy published in June 2025 announced that from 2027, a new British Industrial Competitiveness Scheme will reduce electricity costs by c.£35-40/MWh and support thousands of businesses. The scheme will benefit manufacturing electricity intensive frontier industries in the Industrial Strategy and foundational manufacturing industries in their supply chains. Eligible businesses will be exempt from paying the costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market. The scheme will bring GB electricity costs more in line with other major economies in Europe, and level the playing field for GB businesses.
The government will also continue support for the Energy-Intensive Industries Compensation Scheme to support energy efficiency, decarbonisation, and technical innovation.
The government keeps all taxes under review and will continue to review Carbon Price Support beyond the announced rates as part of the policy making process.
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