Elexon, the organisation responsible for managing the electricity wholesale market in Britain, is set to oversee a new support scheme targeting approximately 340 energy intensive industries across the country, starting this April.
The scheme, a component of the British Industry Supercharger programme, seeks to alleviate the burden of network charges on electricity bills for these industries, aiming to bolster their competitiveness within the European market.
This initiative comes in response to the challenges faced by Britain’s energy intensive sectors, which have historically contended with notably high industrial electricity prices compared to their counterparts in Europe.
According to analysis conducted by Ofgem, between 2016 and 2020, energy-intensive companies in the UK experienced electricity bills that were 50% higher than those in France and Germany, despite existing governmental support measures.
Under the new scheme, Elexon will implement a 60% discount on charges related to Transmission Network Use, Distribution Use, and Balancing System Use for eligible companies.
Peter Stanley, Chief Executive of Elexon, said: “By delivering the network charges discount for energy intensive companies, Elexon will be playing a key role in the government’s plans to support investment in a low carbon future.
“It will also provide a greater incentive for electric vehicle and battery manufacturing in the UK, and help these companies to compete on a more level playing field with similar businesses across Europe.”
