A.65 Climate change levy: relief for electricity - The climate change levy discount on electricity for climate change agreement participants available from 1 April 2013 will be increased to 90 per cent.
A.66 Compensation for indirect carbon price floor costs - The Government will provide up to £100 million over the Spending Review period to mitigate the impacts of the carbon price floor on electricity costs to businesses that are electricity intensive and operate in internationally competitive markets from April 2013. It will consult on the precise thresholds for eligibility to ensure the most at risk industries are captured. This compensation is subject to relevant state aid rules.
A.67 Compensation for indirect EU Emissions Trading System costs - The Government will provide compensation for the indirect impacts of the EU Emissions Trading System on electricity costs from January 2013 of up to £110 million over the Spending Review period, from existing departmental budgets. Eligibility will be based on EU rules, which are due to be agreed in 2012.
A.68 Electricity market reform and future energy costs - The Government will explore options for reducing the impact of electricity costs arising as a result of electricity market reform policies, including the Feed-in Tariffs, on electricity intensive industries, where this significantly impacts their competitiveness and subject to value for money and state aid considerations.
A.69 Green infrastructure projects - The Government will invest as UK Green Investments (UKGI) in green infrastructure projects from April 2012, ahead of obtaining state aid approval for the Green Investment Bank. Non-domestic energy efficiency will be one of the priority sectors for UKGI, which will make available up to £100 million in the next financial year for commercial and industrial energy efficiency projects.