The Energy Intensive Industries (EII) compensation scheme began rolling out in 2017 as a way to keep high-energy businesses in the UK competitive while the economy transitions to net zero.
The scheme will now be extended for a further three years and have its budget more than doubled following months of rising energy prices. The Department for Business, Energy & Industrial Strategy said it could also encourage greater electrification in some businesses which will ultimately be needed to meet net zero goals. Today’s announcement will see the scheme’s budget expanded by more than £2bn.
Industry minister Lee Rowley said: “We want to keep the UK at the forefront of manufacturing, helping our energy-intensive industries remain competitive and sustainable for the long term, and continuing to power our economy with thousands of jobs across the country.
“We are not only extending our support through the compensation scheme, by offering a greater level of...