Question

To ask the Secretary of State for Business, Innovation and Skills, if he will bring forward assistance for energy intensive industries from 2016 to 2015.

Energy intensive industries already benefit from compensation for the indirect cost of the EU ETS and the Carbon Price Floor. As announced in Budget, Government is seeking to compensate electricity intensive industries (EIIs) for the indirect costs of the Renewables Obligation (RO) and Feed in Tariff (FiT). Government is also seeking to exempt EIIs from the costs of Contracts for Difference (CfDs) - both compensations are subject to consultation and state aid approval.

The 2016/17 timescale takes into account the time it may take EU for state aid clearance, as it took 18 months to obtain European state aid clearance for the Carbon Price Floor. Government will keep the timetable under review and press for the earliest possible resolution.