A new report has found that reforms to electricity pricing, network charging and infrastructure funding could help deliver the Prime Minister’s ambition to bring UK energy costs into line with European competitors.
The research, published by the British Ports Association, calls for action which they say would require little or no direct Treasury spending. For example, they estimate that extending Climate Change Levy relief to shore power would lead to annual foregone revenue below £5 million.
The BPA also say that the same principles from removing VAT from household electricity should be applied to port infrastructure – which is arguably more strategically important for the country as a whole.
DESNZ reported that in the second half of 2025, the UK had the highest medium non-domestic electricity prices among the EU14 countries plus the UK. A large number of UK ports would fall into the category of medium non-domestic users.
The BPA calls for electricity-cost relief for ports comparable to that available to eligible businesses in other strategically important industries, urgent reform of fixed network charges for high capacity infrastructure built ahead of demand, better recognition of future port and industrial demand in strategic grid planning – and more detailed in their report.
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