Date: 10 January 2023
By allowing a higher discount on the current wholesale price of gas and electricity for energy intensive industries such as glass, the scheme will provide clarity and security to glass manufacturers who have been amongst the most exposed to spiraling costs during the current tough economic climate.
While it is positive news that the glass industry is classified as vulnerable and will be eligible for extended support, the package offered by government still falls short of that being received by many international competitors. The resulting increased production costs will continue to put UK glass manufacturers at a competitive disadvantage.
The glass manufacturing sector remains vital to the UK economy generating £1.6bn annually and directly employing around 20,000 people with an estimated 150,000 more jobs across the supply chain. Therefore, it is vital that the government delivers on its Energy Security Strategy to allow the glass industry to remain internationally competitive.
Commenting on the announcement, British Glass CEO Dave Dalton said:
“While we appreciate that the changes to the Energy Bill Relief Scheme will impact many other sectors and businesses, the renewed support for the energy intensive businesses will allow glass manufacturers to navigate the current climate with some degree of certainty.
“For over a year now glass manufacturers have been facing the brunt of increased gas and electricity costs and the continued support from government will be met with relief from our members.
“However, the package put together relies on stable energy markets for the foreseeable future and still leaves our manufacturers at a competitive disadvantage to our direct competitors due to the increased support they are receiving from their respective governments. This is something that should not be taken lightly during the coming months as the current economic crisis continues.”