1.105 The Government is committed to ensuring that manufacturing is able to remain competitive during the shift to a low carbon economy and to minimising the 'carbon leakage' which might happen if investment relocated abroad. The Government intends to implement measures to reduce the impact of policy on the costs of electricity for the most electricity-intensive industries, beginning in 2013 and worth around £250 million over the Spending Review period. As part of this the Government will:
• compensate key electricity-intensive businesses to help offset the indirect cost of the carbon price floor and the EU Emissions Trading System, subject to state aid guidelines; and
• increase the level of relief from the climate change levy on electricity for Climate Change Agreement participants to 90 per cent.
1.106 The Government will also explore options for reducing the impact of electricity costs on electricity-intensive industries as a result of electricity market reform policies where this has a significant impact on their competitiveness.