Following a concerted campaign led by the ADE and supported by other leading trade associations such as the CBI and the EEF, the Chancellor announced that highly efficient CHP would be exempt from the carbon price floor tax from 2015. This will deliver £70m a year in tax relief to CHP operators.
About the Campaign
In April 2013, the Government increased energy taxes on industry using CHP by £158m. An industrial site using gas CHP, one of the most efficient uses of gas, saw energy taxes rise faster than a coal power plant.
Combined heat and power is the lifeblood of British industry supplying electricity, process heat and steam to make every day products in Britain and for export. The ADE launched the Less Waste, More Jobs and Growth camapign to highlight the contribution that CHP makes to British industry. Here are some key facts:
- CHP can reduce a business’ energy demands by up to 30%
- CHP reduces UK emissions by more than 15 million tonnes of C02 each year
- CHP supports industrial competitiveness on more than 375 industrial sites in the UK,
- More than 130,000 jobs in the UK are located on sites which use combined heat and power to meet their energy needs. In recent years, industry invested tens of millions of pounds in combined heat and power to become more energy efficient and improve competitiveness.