The Chancellor announced in his Budget speech today, that there will be a package of reforms that will “radically reduce” energy costs for businesses, especially manufacture and power plants, pledging to save up to £7 billion by 2018/19 for industry as well as households.
He said the move would benefit the most energy intensive manufacturers in particular, with 80% of these based in the North of England, Scotland and Wales. They would save on average £50,000 per year, while the average household would save around £15.
Mr Osborne also said he would give a further £1bn to energy-intensive firms to compensate them for green levies on their bills.
The Chancellor also announced a new allowance for “ultra high pressure high temperature” oil fields as part of his drive to squeeze every last drop of commercially viable hydrocarbons from the North Sea.
The carbon floor price (CPF) would be capped which sets rising amounts for the carbon tax paid by electricity generators.