Standard content for Members only

To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.

If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.

Become a member

Start 14 day trial

Login Register

CBI urges the Chancellor to extend Carbon Floor Price exemptions

The CBI has urged the Chancellor of the Exchequer to extend the period of time for which energy intensive industries will be compensated for paying the additional costs caused by the Carbon Floor Price (CFP).

Director General of the CBI, John Cridland, wrote to George Osborne calling for guaranteed support for heavy energy users for the duration of the CFP.

He said: “Investments are made with at least a ten year profile in mind, so government must guarantee support for the duration of the policy, expanding the package to reflect its upward trajectory, if it is to anchor investment intentions.”

Cridland added that “further relief” could be given to large energy consumers by providing exemptions to energy produced by Combined Heat and Power systems from the CFP.

The CBI also called on the Chancellor to make changes to the Energy Company Obligation (Eco) in the Autumn Statement on 5 December.

Cridland acknowledged Eco is “an important policy” in terms of supporting vulnerable and fuel poor households, but said “it would be sensible to allow greater flexibility within the scheme”.

He added that increasing the number of measures eligible under the scheme would improve its cost effectiveness, and that the government should extend the scheme from 2015 to 2017 to give those delivering the policy “greater certainty”.