Confor campaigns for energy rebate for sawmills

Responding to a government consultation on eligibility for payment relief, Confor said the eligibility rules should be adapted to recognise the competitive pressures on the UK sawmilling sector. It is estimated that the relief could provide cost savings of around £3m per year by 2020.

The government is expected to make its final recommendations within three months. Subject to state approval, the exemption could be in force by autumn 2015.

“There is a very tight window in which to press the case for sawmillers so we have engaged a lobbying firm, Tetra Strategy, to work with us,” said Confor chief executive Stuart Goodall.

“Given the proposed eligibility criteria, it will be very difficult to secure a place for sawmilling. However, we are developing our argument and we will make the case as effectively as we can on behalf of the industry.”

Under the proposed criteria UK sawmills would not meet the sector electricity intensity criteria of 7%. This is a far higher threshold than the 3% hurdle for the Climate Change Agreement, which took Confor many months to convince DECC that the sector met. Furthermore, Confor said, the electricity threshold of 20% adopted under the business-level test approach would be too high for individual sawmill businesses.

“We consider that the eligibility criteria do not give sufficient allowance for sectors which are hugely trade intensive, such as sawmills which operate at around 70% trade intensity,” said Mr Goodall.

“We propose that the regulations could better reflect businesses that are extremely trade intensive and vulnerable to competition from abroad or include businesses which belong to a Climate Change Agreement scheme automatically.”