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Press Release

Today, 1 October, sees Britain’s biggest manufacturing exporter inherit £60 million of additional unnecessary costs as the decision to remove the gas short-haul transmission discount comes into force.

Under the previous framework major gas consumers could benefit from a gas short haul transmission discount making it economically viable for businesses in our sectors as well as other to remain connected to the Grid. The decision to remove this mechanism results in a clear signal forcing businesses to bypass the National Transmission Network.

Chief Executive of the Chemical Industries Association, Steve Elliott, said: “Chemical manufacturing and the delivery of critical products and solutions for society through highly skilled jobs just got that bit tougher today with this new cost.

He added, "Right in the middle of combatting COVID-19 and continued uncertainty over our relationship with the EU - our industry’s most important market - the removal of the short haul tariff discount is not only incredibly insensitive, but also completely flies in the face of the Government’s stated levelling up agenda to boost jobs and growth across the regions / country."

ENDS


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