Energy Intensive Industries

Department for Business, Energy and Industrial Strategy written question – answered on 15th January 2019.

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Photo of Jessica Morden Jessica Morden Opposition Whip (Commons), Chair, Statutory Instruments (Joint Committee), Chair, Statutory Instruments (Select Committee)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential merits of exempting electro-intensive industries from capacity market costs.

Photo of Claire Perry Claire Perry The Minister of State, Department for Business, Energy and Industrial Strategy, Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

Our assessment is that exempting electricity intensive industries from Capacity Market costs is not compatible with State aid guidelines. This remains our view as we work to restore State aid approval for the Capacity Market as soon as possible.

The Capacity Market is the most cost effective way of ensuring we have the electricity we need now and in the future. This ensures all energy consumers – including energy intensive industries – benefit from a secure and affordable supply of electricity.

Some Energy Intensive Industries can also receive payments through the Capacity Markets by participating as turn-down Demand Side Response, where they are compensated for reducing their consumption during times of stress.

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