The government is seeking views on whether to broaden eligibility for exemption from indirect costs of renewable electricity support schemes.
Widening the scope of eligibility for energy intensive industries (EIIs) would provide greater access to support schemes including contracts for difference (CfD), Renewables Obligation (RO) and, if introduced, small-scale Feed-In Tariffs (FIT).
The consultation will consider whether there is evidence of potential competitive distortions due to the current eligibility threshold for the exemption schemes. It is seeking views on how much the current threshold of 20 per cent electricity intensity should be lowered (17, 15 or 10 per cent) to address the distortions, as well as how to minimise costs for non-eligible consumers if the threshold is lowered.
It will also look at redistribution of funds recovered from over-exempted EIIs and ways to improve operation of the exemption schemes.
The government is seeking input from EIIs (whether currently benefitting or not from the exemption schemes), other electricity consumers, trade bodies, consumer associations, devolved administrations and other interested parties.
The consultation closes on 7 September 2018.