First step in the right direction

MPA offers cautious welcome to proposed exemption of energy-intensive industries from cost of ‘contracts for difference’

THE Mineral Products Association (MPA) has offered a cautious welcome to the Secretary of State for Energy and Climate Changes’ statement that it is looking at exempting energy-intensive industries from the cost of ‘contracts for difference’, subject to state-aid approval.

Although the Government has not said exactly which sectors will be exempt, it does acknowledge the important role cement has to play in building the infrastructure for a low-carbon economy and the need to ensure that energy-intensive businesses remain competitive and do not relocate to other countries.

‘This is a first step in the right direction,’ said Pal Chana (pictured), executive director of the MPA. ‘Cement and lime are highly energy-intensive manufacturing processes and contracts for difference would add considerably to the price of electricity for these sectors, which are already struggling under the cumulative burden of regulatory and carbon costs.

‘We look forward to working with the Government to ensure cement and lime are exempt from the cost of contracts for difference and state-aid approval is secured.’