The Government is powering up a huge energy discount scheme that could save Britain’s heaviest power users up to £420 million a year from 2026.
A new consultation launched today sets out plans to raise the current 60% discount on electricity network charges to 90% for around 500 of the most energy-intensive businesses – including firms in steel, ceramics, glass and chemicals.
It’s part of the Network Charging Compensation (NCC) scheme under the British Industry Supercharger package, aimed at closing the gap between UK industrial electricity prices and those in France and Germany.
Business Secretary Jonathan Reynolds said: “We’re wasting no time in powering ahead with our plans to tackle energy costs for great British businesses and level the playing field.
“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.”
The move will see eligible companies benefit from a further cut of about £7 per megawatt hour off their energy bills, taking total savings to hundreds of millions each year.
The consultation also proposes doubling the time window to apply from one to two months.
Energy costs have long been a sore point for UK industry, with heavy users hit harder than European rivals.
Gareth Stace, Director General of UK Steel and Chair of the Energy Intensive Users Group, said: “Increasing network charge compensation under the Government’s Supercharger scheme is a very welcome and much-needed step towards achieving competitive electricity prices for the UK’s steel sector and other foundation industries.
“Truly competitive energy prices are essential to unlocking investment, creating jobs, accelerating decarbonisation and securing the long-term future of steelmaking in the UK.”
The plans follow the launch of the new British Industrial Competitiveness Scheme, set to cut electricity costs by up to 25% for 7,000 firms from 2027 and new powers to speed up grid connections and reserve capacity for key projects.
Heavy industry to get 90% energy discount appeared first on Energy Live News.