Industry body Energy UK has voiced concerns over plans to exempt some energy intensive businesses from Capacity Market charges.
The Government has announced the plans under the British Industry Supercharger to ensure the energy costs for key UK industries are in line with other major economies around the world.
The support will be made available to sectors particularly exposed to the cost of electricity, such as steel, metals, chemicals and paper. These industries employ around 400,000 workers across the UK, and support many more in their supply chains.
Although Energy UK said it agrees that strategically significant industries delivering economic benefits should be supported so that they are not put at a competitive disadvantage internationally, it has urged the Government to carry out an impact analysis before implementation.
This would look at the impact the measure could have on other policy objectives such as security of supply and decarbonisation, avoid unintended consequences, and ensure any trade-offs are proportionate.