Energy Security Bill - compensation for energy intensive industries

18th May 2023 | Mollie Pinnington | 2 minute read

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Energy-intensive businesses in the UK have been hit hardest by rising energy costs, leading to a significant competitive disadvantage compared to their European counterparts. It's estimated that British firms could be paying up to 40% more for electricity than their continental rivals. This is threatening the profitability of energy-intensive industries such as steel and paper manufacturing, which are struggling.

On 23 February 2023, the government announced the British Industry Supercharger: a new energy security bill designed to aid energy-intensive industries in the UK with rising costs. The bill introduces long-term financial compensation for businesses that operate in these sectors, allowing them to remain competitive with their European counterparts.

Measures within the bill include:

  • Increased levels of exemption for different charges usually found on business energy tariffs.
  • 100% exemption on capacity market charges
  • Compensation on network charging costs


why are ETIIs getting more support?

Energy-intensive industries in the UK have been facing an increasingly difficult economic climate as energy prices continue to rise. These businesses are struggling to remain competitive against their European counterparts, who often benefit from lower energy costs. This makes it difficult for UK firms to remain profitable and viable in the long term.

Energy-intensive industries in the UK are a cornerstone of the economy, providing employment to millions of people across the country. In particular, sectors such as steel and paper manufacturing are integral parts of Britain’s manufacturing base and offer high-skill, well-paid jobs to workers. Unfortunately, rising energy costs have led to significant financial losses for these industries, making it difficult for them to remain competitive in the global market.

The government’s energy security bill aims to address this issue by providing financial compensation to businesses operating in energy-intensive sectors. This will help them to remain competitive with their European counterparts and ensure that they continue to employ people across the UK.

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