Around 500 of the UK’s most energy-intensive businesses are set to save up to £420 million per year on their electricity bills from next April, as the government has announced a new scheme to slash industrial energy costs.
Some of these businesses currently pay the highest industrial electricity prices in the G7, making it harder to stay competitive on the international stage, which is why the government has taken decisive action to deliver this relief and level the playing field for industry.
The increased discount will also slash costs for a range of businesses across Scotland and Wales to help them support local jobs and deliver growth, including Tata Steel at Port Talbot and INEOS in Grangemouth, ensuring the benefits are felt right across the country.
The increased discount under the Network Charging Compensation (NCC) Scheme will bring down electricity bills for businesses by slashing the prices they pay to access the UK’s electricity network.
This will help bring industrial energy prices in line with other major European economies to keep the UK competitive on the global stage, protect local jobs in the UK’s foundational industries, and attract new investment, delivering on the Government’s Plan for Change.
The Government is also driving forward plans to have a new Connections Accelerator Service in force by the end of 2025, which will streamline access to the UK’s electricity grid.
This will make it easier for major investment projects to speed up delivery, bringing new high-quality jobs and growth to local communities and boosting the UK’s investment attractiveness further.
“Our research shows energy costs remain a major concern, forcing many businesses that are struggling to pay their bills to raise prices,” said Ben Martin, Policy Manager at the British Chambers of Commerce.
“Energy is a business essential, not a luxury. The promise of cheaper bills for hundreds of energy-intensive firms through increasing the discount on electricity network charges is welcome,” he said.
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