Insights Data centres and rising energy prices – UK Government consults on proposals for high energy intensive industries

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The UK government (BEIS) currently has two consultations open on energy. The first consultation is general and focuses on electricity market arrangements (to identify reforms needed to transition to a decarbonised, cost effective and secure electricity system (with responses due by 10 Oct 2022 – click here).

High power intensive industry, such as data centres, will also likely be interested in a second Consultation, issued by BEIS on 12 August. This consultation seeks views on the Government’s exemption scheme for Energy Intensive Industries from the indirect costs of funding the Contracts for Difference (CfD), Renewables Obligation (RO) and small-scale Feed-in Tariffs (FIT) schemes (“Exemption Scheme” or “Scheme”). BEIS is asking for feedback and evidence on whether there is a rationale for increasing the subsidy level of the current scheme in order to address the increased risk of carbon leakage and the higher costs of industrial electricity prices. Responses are due by 16 Sept 2022. To find out more, click here.

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