Scheme cutting electricity costs for manufacturing businesses extended to NI

A UK government scheme which cuts electricity costs for manufacturing businesses is to be extended to Northern Ireland.

Until now it only operated in Great Britain which was putting some Northern Ireland firms at a competitive disadvantage.

It did not apply in Northern Ireland as it is part of an all-Ireland electricity market with different regulations and charges.

The UK government said it will provide Stormont with the money to develop a local version of the scheme.

The British Industrial Competitiveness Scheme (BICS) cuts what are known as policy costs.

These are mainly environmental levies which are added to the electricity bills of businesses and households.

For businesses in GB that qualify for the scheme it is expected to reduce electricity bills by up to 25%.

Stormont will have to design its own scheme in liaison with the UK government.

It comes as Stormont ministers have approved extra money to widen a support package for households which use home heating oil.

The Secretary of State Benn said: "The Chancellor and Secretary of State for Business and Trade have announced the expansion of the BICS to cut the energy bills in Great Britain."

He said he was "pleased" that the money could be found for Northern Ireland.

"Energy policy sits with the Northern Ireland Executive, and the Government will continue to engage with Northern Ireland ministers to ensure we are providing support to those most affected."

A similar move has already been made in regard to household bills.

It means all households in Northern Ireland are set to get a £30 reduction in electricity bills for the next three years.

The reduction will be given for the first time in July, and in the following two years it will apply in April.