Industries exempted from levy on energy

ENERGY-intensive industries such as ceramics and steel will be exempt from the Government’s energy tax on businesses, known as the climate change levy, it was announced yesterday.

Gareth Stace, head of climate and environment policy at manufacturing organisation EEF, said it will bring UK firms in these sectors into line with the same tax regime applicable to many of their European Union competitors.

But Andy Tüscher, regional director for the North for the EEF, said although the exemptions were welcome, more could have been done as there is still “no clear policy regarding energy-intensive industries”.

Hide Ad
Hide Ad

Richard Wright, executive director of Sheffield Chamber of Commerce, said: “The future cost of producing carbon is critical to our future energy policy and to the competitiveness of our high energy users.

“The cost of producing carbon is translated into a levy so I’m pleased with the decision to exempt metallurgical processes which are very important to the Sheffield City Region.”

But he warned that if the UK doesn’t set the cost of carbon high enough fossil fuels will always be much cheaper than renewables and the investment in a balanced energy production portfolio will not occur.

The Government said it will introduce exemptions from the climate change levy for energy used in metallurgical and mineralogical processes from April 1, 2014.