NI farmers must be eligible for higher energy relief, says union

Agricultural businesses must be eligible for the UK government's higher energy relief, the UFU has said
Agricultural businesses must be eligible for the UK government's higher energy relief, the UFU has said

The prospect of Northern Ireland farmers and growers missing out on the highest level of energy support from April of this year has been called 'extremely worrying'.

The Ulster Farmers’ Union (UFU) has criticised the UK government for disregarding the importance of local farming by dismissing farms as high-energy businesses in it’s review of the Energy Bill Relief Scheme.

This would could in turn impact local food security and be detrimental for farm families in the region, the UFU warned.

The new Energy Bills Discount Scheme, running from April 2023 – March 2024, will be available to everyone on a non-domestic contract including businesses and voluntary sector organisations.

High energy business that are "particularly vulnerable to high energy prices due to their energy intensive and trade exposure" will receive a higher level of support, subject to a maximum discount.

The union said it was now awaiting further information on the scheme to be published.

Following a review, the relief for electricity for non-high energy businesses will be £19.61 per MWh with a price threshold of £302 per MWh, with gas relief £6.97 per MWh with a price threshold of £107 per MWh.

For high energy businesses, likely to include those who manufacture and process food, they have been offered support for electricity that amounts to £89 per megawatt hour (MWh) with a price threshold of £185 per MWh.

For gas, the relief for these businesses is £40 per MWh, with a price threshold of £99 per MWh.

UFU deputy president, William Irvine said the prospect of Northern Ireland farmers and growers missing out on the highest level of energy support was 'extremely worrying'.

"It has the potential to seriously impact our food security at a time when we need to be doing all we can to support our food producers and develop our self-sufficiency.

“Energy is a critical source within food production and farmers are heavily reliant on it. Especially those that rear livestock and store fresh produce.

"The apple sector being a notable example and how they use their cold stores up to September."

He added: "While there may be relative relief with an easing of wholesale energy prices, many farmers will struggle to absorb huge hikes in energy in the year ahead if they do not get the necessary support.

"The UFU will lobby to ensure all agricultural businesses are eligible for the higher rate of relief.”