In February 2023, the government announced a set of measures it coined the “British Industry Supercharger (BIS)”. The purpose of the Supercharger is to make Britain’s strategic energy intensive industries more competitive across Europe and tackle the challenge of indirect carbon leakage. The package of support is aimed at reducing electricity costs for EIIs by £20/MWh by 2025.

What is included in the British Industry Supercharger?

The measures are:

  • An increase in the subsidy under the existing EII Renewable Levy Exemption scheme from 85% to 100% aid intensity, which is changing to around a £5/MWh reduction from current levels. This will be implemented in April 2024.
  • Capacity Market Charges Exemption: A new, full indirect exemption from the costs associated with the UK Capacity Market, which is also anticipated to amount to around £5/MWh. Details are being consulted on at the moment, but it is expected to be implemented in 2024.
  • EII Network Charging Cost Compensation: A proposed compensation for the charges paid for using the GB electricity grid to reach a £10/MWh reduction. This is proposed to be implemented in April 2025, and details of delivery will be consulted on in June 2023.

Consultation closed

The BIS underwent a consultation from June to August 2023. The government saught views from a wide range of audiences to help assess compensation needed for EIIs. Overall, responses represented the views of over 2000 organisations, when taking into account bodies who answered on behalf of multiple members. The government said it intends to take forward measures to compensate EIIs for a portion of their network charges, with savings starting to materialize from April 2024.