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Energy Intensive Industries: Biofuels

Question for Department for Business, Energy and Industrial Strategy

UIN 186153, tabled on 23 April 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the effect of the Green Gas Levy volumetric charges on the operations of gas intensive industries.

Answered on

29 April 2021

The Government will launch the Green Gas Levy with a per meter point approach later this year, the design of which was set out in the recent Future Support for Low Carbon Heat & Green Gas Levy Government Response. The impact of a per meter point approach on gas intensive industries is expected to be minimal.

However, the Government recognises the clear benefits of a volumetric levy that aligns policy costs more closely with energy consumption. The Government has been clear that any volumetric levy design must be simple to administer and deliver, minimise costs on consumers, and take consideration of the impact on energy intensive industries and other important UK industries. The Government will ensure it consults fully and works closely with stakeholders on any new proposals in this area.

Further details on the impact of transitioning to a volumetric levy will be set out in the impact assessment that will follow the government response mentioned above in due course.