Osborne’s budget good news for combined heat and power

The UK Chancellor of the Exchequer, George Osborne, has revealed good news for the UK’S combined heat and power sector in his annual budget speech at the House of Commons.

Mr Osborne told Parliament that CHP will be exempted from the carbon price floor, as part of a £7bn package to cut energy bills for British manufacturers.
“There will be an exemption from the carbon price floor of combined heat and power, which lots of manufacturers use,” he said.

The chancellor’s energy focus for this budget was primarily driven by assisting the UK’s manufacturing sector and he said such measures will be delivered without any reduction in renewables investment.

Osborne told the House that the legislation 'tilts the playing field' in favour of efficient industrial energy.

The UK CHPA were delighted with the exemption. In an emailed statement, CHPA Director Dr Tim Rotheray said, "It is through energy efficiency investments like combined heat and power that we can secure thousands of manufacturing jobs and keep UK industry competitive over the long term. Industrial energy efficiency makes savings of £165 million every year which is the equivalent of nearly 6,000 manufacturing jobs. This announcement will help some of the UK’s most energy efficient industrial sites continue to grow, invest, and protect jobs in key manufacturing sectors.

“Most importantly, today’s Budget will help drive investment in industrial energy efficiency, delivering the rare combination of increased industrial competiveness and lower carbon emissions. Industry will continue to face challenges from rising energy and tax costs, but commitment to supporting industrial energy efficiency is an important step in the right direction."

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