CfD compensation package confirmed
The government has finalised the compensation scheme for energy intensive industries to reduce the impact on their bills from policies to decarbonise electricity generation.
The regulation, which has been laid in parliament, exempts more than 130 eligible companies from some of the costs of the Contracts for Difference (CfD) scheme, which encourages investment in low-carbon energy generation.
The costs of funding the scheme are recovered through a levy on energy suppliers and passed on to domestic and business consumers in their energy bills. The impact is biggest on industries that use large amounts of electricity, such as steel, chemicals, glass and cement.
Although energy costs ...