Around 500 of the UK’s most energy-intensive businesses, such as British Steel and INEOS, are set for a huge boost as the government has announced a 90% discount for businesses’ network charging costs.
On Friday (18 July), it announced the launch of a four-week consultation on its plans to increase the discount on businesses’ electricity network charges from 60% to 90%. The review will seek the industry’s views on the 30% uplift and doubling the window which businesses have to apply for support through the scheme from one month to two.
Network charges are the costs paid by electricity network users for access to the service and are already discounted by 60% for some of the UK’s biggest industrial businesses through the NCC scheme since April 2024, saving businesses millions of pounds every month.
The proposals in the consultation launched today would see their costs fall by around a further £7 per megawatt hour (/MWh), bringing electricity prices more into line with European countries such as France and Germany.
The landmark new support is expected to save around 500 of Britain’s most energy-intensive firms in key sectors like steel, ceramics, glass and chemicals up to £420m per year from 2026 when in force and bring the UK’s industrial energy prices in line with European competitors.
“This government is on the side of British industry. When we make promises, we deliver on them. That’s why we’re wasting no time in powering ahead with our plans to tackle energy costs for great British businesses and level the playing field,” said Business Secretary Jonathan Reynolds.
“The cornerstone of our modern Industrial Strategy, this landmark new support will meet a longstanding need from industry which other governments shirked – paving the way for new investment and job creation at the heart of our Plan for Change,” he said.
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