Energy intensive industries compensation scheme inquiry launched

19 October 2012

The Committee has launched a new inquiry into the Energy Intensive Industries Compensation Scheme, on which the Government is consulting

A report by the Committee on Carbon Budgets (PDF 591KB) in October 2011 included an examination of the issue of ‘carbon leakage’ – the scope for emissions-taxes to drive high energy using industries to be relocated abroad to countries with lower carbon taxes.

Since that inquiry, the Government announced in the 2011 Autumn Statement that it intended to introduce in 2013 a compensation package worth £250m, to offset the effects for such industries of the EU Emissions Trading System and the Carbon Price Floor.  In March 2012 the Government launched a call for evidence to capture energy cost information from energy intensive industries and on 5 October 2012 it launched a consultation on the design of the compensation scheme. The consultation closes on the 21 December 2012.

The Committee intend to examine the rationale and design of the compensation scheme and report before the new arrangements are fixed by the Government. The Committee intend to take oral evidence in early December from stakeholders and Government.

The Committee invites organisations and members of the public to submit written evidence, setting out their views on the Government proposals. Submissions should ideally be sent to the Committee by Friday 23 November, although later submissions may be accepted. Guidance on preparing submissions is set out below.

Guidance on written submissions

Each submission should ideally:

  • Begin with a short summary in bullet point form;
  • Have numbered paragraphs; and
  • Be in Word format with as little use of colour or logos as possible.

A copy of the submission should be sent by e-mail to and marked ‘Energy Intensive Industries’. An additional paper copy should be sent to:

Clerk of the Committee
Environmental Audit Committee
House of Commons
7 Millbank

It would be helpful, for Data Protection purposes, if individuals submitting written evidence send their contact details separately in a covering letter. You should be aware that there may be circumstances in which the House of Commons will be required to communicate information to third parties on request, in order to comply with its obligations under the Freedom of Information Act 2000.

Please supply a postal address so a copy of the Committee’s report can be sent to you upon publication.

A guide for written submissions to Select Committees may be found on the parliamentary website at:

Guide for Witnesses to House of Commons Select Committees (PDF PDF 1.25 MB)

Please also note that:

  • Material published elsewhere should not form the basis of a submission, but may be referred to within a proposed memorandum, in which case a hard copy of the published work should be included.
  • Memoranda submitted must be kept confidential until published by the Committee, unless publication by the person or organisation submitting it is specifically authorised.
  • Once submitted, evidence is the property of the Committee. The Committee normally, though not always, chooses to make public the written evidence it receives, by publishing it on the internet (where it will be searchable), by printing it or by making it available through the Parliamentary Archives. If there is any information you believe to be sensitive you should highlight it and explain what harm you believe would result from its disclosure. The Committee will take this into account in deciding whether to publish or further disclose the evidence.

Further information

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