The Government has unveiled new regulations to save companies hundreds of millions of pounds in electricity costs.

The measures aim to benefit over 130 energy intensive companies in sectors such as steel, chemicals, glass and cement, with around £100m expected to be saved each year.

The new rulings will exempt certain companies from costs incurred via the Contracts for Difference scheme, which is designed to encourage investment in low-carbon energy generation..

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The process guarantees companies a certain price for the low-carbon electricity they produce for a set number of years. While this provides the support and certainty needed to attract investment, the costs are recovered through a levy on energy suppliers which is passed on to domestic and business energy bills. This only makes up a minor part of most electricity bills, however it has a more significant impact on industries which use a lot of electricity.

Energy Minister Jesse Norman said: "These industries are worth £52 billion to the UK economy, support 600,000 jobs and produce essential products that people use every day. That is why we have taken this action to support them."

(LM/MH)