Government introduces powers to cut network charges for industry

The government is introducing powers to cut heavy industrial electricity users’ network charges while setting out the statutory role of its new body Great British Nuclear (GBN).

Both moves are contained in a series of forthcoming amendments to the Energy Bill, which have been announced by the government today (9 May) as the legislation re-enters the House of Commons.

The first amendment introduces a compensation scheme that will lower the costs energy intensive industries (EIIs) must pay in order to use the electricity grid.

In March, the then recently established Business and Trade Department announced that the government was exploring reductions on network charges, which industrial users pay for their supply of electricity, as part of its Supercharger initiative for EIIs.

The department said other proposed changes under the Supercharger initiative include exemptions for EII firms from certain costs arising from renewable energy obligations such as the Feed in Tariff, Contracts for Difference and the Renewables Obligation as well as capacity market costs.

The ministerial amendments announced today also include setting out the statutory role of GBN , which has been charged with helping to facilitate the government’s goal that 25% of the UK’s electricity generation is supplied from nuclear sources by 2050.

And the government is bringing forward powers for the North Sea Transition Authority to map out the UK’s offshore carbon capture and storage potential.

Nusrat Ghani, business and trade minister, said: “Energy-intensive industries like steel are hugely important to our economy. This measure will cut costs and help ensure they can bring high-quality jobs and investment into the UK.

“This support will mean that these key industries stay in line with their global competitors, helping deliver on the Prime Minister’s priority to make the UK the most attractive place to do business and grow our economy.”