LONDON, March 28 Britain's government presented
new regulations to Parliament on Tuesday which it said will
exempt certain heavy industries from some of the costs of a
renewable energy support scheme, saving them around 100 million
pounds ($125 million) a year.
The measures will exempt around 130 energy-intensive
companies in Britain in sectors such as steel, chemicals, glass
and cement, from some of the costs passed on from the
government's Contracts-for-Difference (CfD) scheme which is
aimed at spurring investment in low-carbon energy generation.
Businesses with high energy consumption, such as chemicals,
steel or cement producers, have long complained about rising
costs from Britain's climate change policies.
"We want the UK to be one of the best places in the world to
build and grow a business and that means creating the right
conditions for companies to thrive and succeed," UK energy
minister Jesse Norman said in a statement.
CfDs are won through a competitive bidding process which
guarantees companies a certain price for the low-carbon
electricity they produce for a set number of years.
This should give them support and certainty to attract
investment and get projects off the ground.
However, the cost of funding the scheme is recovered through
a levy on energy suppliers which is then passed onto domestic
and business energy bills.
Although energy costs on average account for 3 percent of UK
business expenditure, there are 15 sectors where this reaches 10
percent, the government said in a statement.
Separately, the government is pursuing discussions with the
European Union to seek further exemptions from policy costs for
energy-intensive industries, it added.
($1 = 0.7963 pounds)
(Reporting by Nina Chestney Editing by Ruth Pitchford)