Business

UK properties may face increased energy prices as govt seems to decrease business burden

LONDON (Reuters) – Britain is contemplating giving extra firms exemption from schemes to assist pay for renewable energy, however warned the transfer may result in increased prices for households and non-exempt companies.

British companies have lengthy complained they face among the highest electrical energy prices in Europe and the government is on the lookout for methods to assist the business neighborhood following its vote to go away the European Union.

But the government additionally desires decrease electrical energy costs for households, and plans to launch a worth cap on essentially the most broadly used tariffs via regulator Ofgem by the top of the yr.

An affect evaluation of the business exemption plans, revealed alongside a session by Britain’s Department for Business, Energy and Industrial Strategy (BEIS) on Friday, stated the proposals may add 1 to 7 kilos a yr to family payments.

“A rise in electricity bills may decrease household’s disposable income and have a disproportionately large effect on poorer income groups,” the affect evaluation stated.

All of Britain’s massive six power suppliers have introduced worth will increase this yr and partly blamed rising coverage prices reminiscent of renewable subsidy schemes recouped by the government through levies added to each home and industrial electrical energy payments.

Most firms that use numerous electrical energy, with an power depth of 20 %, are at the moment eligible to hunt exemption from the vast majority of oblique prices, or increased electrical energy payments regarding renewable subsidies.

Energy intensive firms, beneath the 20 % threshold and never eligible for the exemption “continue to face an uneven playing field with international competitors,” the session stated.

The session considers reducing the power depth threshold for eligible firms to these with 10, 15 or 17 % power depth, and affords totally different ranges of exemption.

Under the assorted eventualities firms that would grow to be newly eligible for the scheme may save on common 1.2-2.eight million kilos a yr on their electrical energy payments, the report stated.

“There may be greater investment flows in the UK, since newly eligible firms face a fall in their production costs. This may help to retain high skilled labour in the UK,” the report stated.

The session on the plans is open till September 7, BEIS stated.

Reporting By Susanna Twidale; Editing by Elaine Hardcastle


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