The British Industry Supercharger (DBT), Energy Intensive Industries (“EIIs”) in Great Britain

• The value of the subsidy was around £320M-£420M per year. The purpose of the subsidy is to reduce industrial electricity prices by around £24 per MWh by 2025 for eligible EIIs.
• Our key takeaways from the Subsidy Advice Unit (SAU) report are:
  • The report was critical of the inconsistent use of definitions, especially in relation to the key concept of “carbon leakage” – always ensure definitions are sufficiently clear and applied in the same way throughout.
  • Always make sure your policy objectives are clear and comparators (if using them) are relevant.
  • To comply with Principle E, be clear as to why the approach of the subsidy is appropriate.
  • Remember to explain how the subsidy will bring about the desired change in economic behaviour (Principle C) while also indicating how over compensation will be avoided (Principle B).
  • Finally, always include an evaluation of the potential impact on competition and investment within the UK to comply with Principle F

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