Widening the Exemption for Energy Intensive Industries from the Indirect Costs of the Renewables Obligation (Scotland): Consultation

Overview

In response to concerns that the current threshold which exempts a portion of EII from the indirect cost of the Renewable Obligation creates competitive distortions, the UK Government is consulting on a proposal to lower the threshold to extend eligibility.

Given our devolved responsibility for the Renewables Obligation Scotland, the Scottish Government is seeking views on the possible impacts of a parallel proposal.

Why your views matter

The Scottish Government is seeking views from interested stakeholders on the proposal above. Particularly, we seek to understand:

a) if the current eligibility threshold does create competitive distortions
b) if so, which of the options set out by BEIS would best address such distortions.
c) whether SG should consider amending the ROS to deliver similar changes
d) if divergent eligibility rules in Scotland would create a cost burden for Energy Intensive Industries

Responses will help to assess the impact of the proposal and aid subsequent policy-making.

Download the consulation paper.

What happens next

Once the consultation has closed, responses will be collated and analysed. We will continue to work closely with BEIS to understand the outcomes of their parallel consultation. Once all views and impacts have been considered, we shall publish our response.