It is reported that a trio of measures, including compensation to offset the Carbon Price Floor and the EU Emissions Trading Scheme, could knock between 5% and 10% off electricity bills of energy intensive businesses such as steel and chemicals.

The measures include up to GBP 60 million per year in compensation for companies affected directly or indirectly by the Carbon Price Floor. There will be up to GBP 50 million per year in funding to offset the cost of the EU Emissions Trading Scheme.

On top of these two measures the Chancellor will announce that relief from the climate change levy for heavy industries that have entered into climate change agreements will rise from 65% to 90%. The relief had been expected to rise to 80%.

The total value of the three measures over the current funding period is expected to be GBP 250 million.

A Treasury spokesman said that "These measures are designed to ensure these industries can remain competitive despite the new legislation coming through."

(Sourced from www.telegraph.co.uk)