I have been asked to reply on behalf of the Department for Business, Innovation and Skills.

Guidance for applicants will be published this month and payments to eligible businesses will commence shortly thereafter.

The Government is waiting for state aid approval from the European Commission for the carbon price floor compensation scheme. We expect to get a final decision later this month and we are hopeful that we will be able to commence the scheme shortly thereafter.

The first annual report on consumer-funded levies will be published to a timetable consistent with Ofgem’s reporting on the renewables obligation for 2013-14, scheduled for March 2015. Officials are currently considering how that date could be brought forward.

The levy control framework has been designed with the flexibility to be able to respond to policy changes. The Government expects to meet its renewable energy ambition as set out in the Electricity Market Reform Delivery plan within the Levy Control Framework.

The details of these schemes, including which products and sectors would be eligible is still to be decided. This will be informed by the revised environmental and energy aid guidelines which the European Commission will be publishing later this spring.

In total 53 companies have received compensation for the indirect costs of the EU Emissions Trading System and we have paid £30 million to date. No compensation has been paid for the indirect costs of the Carbon Price Floor as we are awaiting the final decision from the Commission on our state aid case which I remain hopeful we will receive shortly.

I have been asked to reply on behalf of the Department for Business, Innovation and Skills.

I refer the hon. Member to the answer I gave on 17 March 2014, Official Report, column 419W.

Ministers have regular discussions with the Commission on the issue of state aid approval for the Carbon Price Floor compensation scheme for energy intensive industries. I am optimistic that a decision will be received this month.

There has been considerable engagement between the Government and the Commission regarding the state aid case for the compensation scheme for the indirect costs of the carbon price floor including on the issue of backdating of compensation.

We recently heard from the Commission that their consideration of the case is coming to a close and, subject to their final decision, and I hope that we will receive clearance shortly. This will not include approval for backdating but we will continue to raise this issue with the European Commission.

The package of compensation for energy intensive industries includes compensation for the indirect costs of the carbon price floor and the EU emission trading system. It does not include the renewables obligation. We continue to keep the situation under review.

The Government remains concerned about the impact of energy and climate change policies on energy intensive industries and that is why we have put in place a package of measures to reduce the impact of policy costs on electricity for the most electricity-intensive industries. This includes exempting energy intensive industries from the cost of Electricity Market Reform (Contract for Difference) feed-in-tariffs-the future mechanism by which low carbon energy subsidies will be administered.

There has been considerable engagement between the Government and the Commission regarding the state aid case for the compensation scheme for the indirect costs of the carbon price floor including on the issue of backdating of compensation.

We recently heard from the Commission that their consideration of the case is coming to a close and, subject to their final decision, and I hope that we will receive clearance shortly. This will not include approval for backdating but we will continue to raise this issue with the European Commission.

The package of compensation for energy intensive industries includes compensation for the indirect costs of the carbon price floor and the EU emission trading system. It does not include the renewables obligation. We continue to keep the situation under review.

The Government remains concerned about the impact of energy and climate change policies on energy intensive industries and that is why we have put in place a package of measures to reduce the impact of policy costs on electricity for the most electricity-intensive industries. This includes exempting energy intensive industries from the cost of Electricity Market Reform (Contract for Difference) feed-in-tariffs-the future mechanism by which low carbon energy subsidies will be administered.

There has been considerable engagement between the Government and the Commission regarding the state aid case for the compensation scheme for the indirect costs of the carbon price floor including on the issue of backdating of compensation.

We recently heard from the Commission that their consideration of the case is coming to a close and, subject to their final decision, and I hope that we will receive clearance shortly. This will not include approval for backdating but we will continue to raise this issue with the European Commission.

The package of compensation for energy intensive industries includes compensation for the indirect costs of the carbon price floor and the EU emission trading system. It does not include the renewables obligation. We continue to keep the situation under review.

The Government remains concerned about the impact of energy and climate change policies on energy intensive industries and that is why we have put in place a package of measures to reduce the impact of policy costs on electricity for the most electricity-intensive industries. This includes exempting energy intensive industries from the cost of Electricity Market Reform (Contract for Difference) feed-in-tariffs-the future mechanism by which low carbon energy subsidies will be administered.

There has been considerable engagement between the Government and the Commission regarding the state aid case for the compensation scheme for the indirect costs of the carbon price floor including on the issue of backdating of compensation.

We recently heard from the Commission that their consideration of the case is coming to a close and, subject to their final decision, and I hope that we will receive clearance shortly. This will not include approval for backdating but we will continue to raise this issue with the European Commission.

The package of compensation for energy intensive industries includes compensation for the indirect costs of the carbon price floor and the EU emission trading system. It does not include the renewables obligation. We continue to keep the situation under review.

The Government remains concerned about the impact of energy and climate change policies on energy intensive industries and that is why we have put in place a package of measures to reduce the impact of policy costs on electricity for the most electricity-intensive industries. This includes exempting energy intensive industries from the cost of Electricity Market Reform (Contract for Difference) feed-in-tariffs-the future mechanism by which low carbon energy subsidies will be administered.

The Government has already begun to implement a £380 million compensation scheme, which runs until March 2016, for electricity-intensive businesses, to help offset the indirect costs of the carbon price floor and the European Union emissions trading system. To date we have paid out over £26 million in compensation to help offset the indirect costs of the emissions trading system and await state aid clearance from the European Commission to begin payments in relation to the carbon price floor.

In addition to this compensation, we are committed to providing relief for energy intensive industries from the costs of electricity market reform, also subject to state aid. We have already increased climate change levy (CCL) relief to 90% on electricity for businesses that are part of climate change agreements. From April 2014, we are also introducing an exemption from the CCL on both gas and electricity for mineralogical and metallurgical processes.

I recognise the impact of the carbon price floor on the competitiveness of energy intensive industries which is why we are putting in place a compensation scheme. We have had ongoing discussions with the European Commission and I am optimistic of a positive resolution shortly.

I recognise the impact of the carbon price floor on the competitiveness of energy intensive industries which is why we are putting in place a compensation scheme. We have had ongoing discussions with the European Commission and I am optimistic of a positive resolution shortly.

The Government published an international comparison of energy and climate change policies impacting energy intensive industries in selected countries in 2012. This demonstrates that climate change and energy policy costs are creating a differential between the UK and other countries. This is why Government is implementing measures to reduce the impact of policy on the costs of electricity for the most electricity-intensive industries.

Ensuring UK industry remains globally competitive is a priority for this Government. I am concerned about the impact of the carbon price floor on energy intensive industries and I met with Vice President Almunia and his Commission officials on 29 January to press the Commission for a quick decision on state aid approval.

Currently the Government has pre-notified the European Commission using the same list of eligible sectors as set out in the Commission’s guidelines to member states for the indirect cost of the EU emissions trading system. We have also considered representations made by a range of additional sectors and companies made as part of the consultation on the carbon price floor compensation and will be shortly informing respondents. We will make public the list of additional sectors thereafter.

It is unclear whether the European Commission's draft energy and environmental aid guidelines allow compensation for the indirect emission costs due to the carbon price support mechanism for the UK cement industry. The Mineral Products Association has made a case to me for inclusion, but the final decision rests with the Commission when they publish their guidelines. Meanwhile, BIS officials will continue to work closely with the cement industry over the forthcomings months.