Energy Bills Discount Scheme: Agriculture

Treasury written question – answered on 15th March 2023.

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Photo of Carla Lockhart Carla Lockhart DUP, Upper Bann

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the Energy and Trade Intensive Industry scheme to include primary agricultural production.

Photo of James Murray James Murray Shadow Financial Secretary (Treasury)

As part of the Energy Bills Discount Scheme (EBDS), we have taken a consistent approach to identifying the most energy and trade intensive sectors, with all sectors that meet agreed thresholds for energy and trade intensity eligible for Energy and Trade Intensive Industries (ETII) component of the scheme. These thresholds have been set at sectors falling above the 80th percentile for energy intensity and 60th percentile for trade intensity, plus any sectors eligible for the existing energy compensation and exemption schemes. We have also published further information on the methodology which can be found here:

All other eligible businesses, except for those experiencing low energy costs, will automatically receive a unit discount on their bills of up to £19.61/MW for electricity, and £6.97/MW for gas.

We remain committed to supporting our farmers to produce high quality food and to increase the productivity, resilience, and sustainability of their businesses. That is why we have maintained farm budgets across this Parliament as promised, each year providing an average of £2.4 billion in England, £621m in Scotland, £340m in Wales, and £330m in Northern Ireland.

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