CPI Welcomes Government Action to Reduce Electricity Costs for UK Paper Mills

The UK Government has confirmed that the support offered through its ‘Supercharger’ scheme – open to energy intensive installations in specified sectors including papermaking – will be increased.

The UK government accepts that the high cost of electricity in the UK is a huge problem for energy intensive manufacturing when exposed to imports from countries with lower energy costs. This is a key initiative to address the problem and follows extensive input and evidence from the Confederation of Paper Industries (CPI) and its members, to stress the importance of competitive energy costs in the face of international competition.

The change means that UK mills in the Supercharger scheme will see the rebate received for charges related to network costs increased from 60% to 90% – more in line with the costs faced by competitors in Germany.
Alex Veitch (CPI Chief Executive Officer) commented:

“This policy decision is a welcome step in the right direction, following detailed discussions with government to make the case for support. Looking ahead, our members need government to set us on a course toward internationally competitive energy prices to keep and grow jobs and manufacturing in the UK.

“However, while the Supercharger scheme supports parts of the paper sector, we still see urgency in addressing energy costs faced by all UK industry.”

Source: CPI