Skip to main contentThis morning, the UK government announced its new Industrial Strategy, announcing major reforms that will cut electricity bills by up to 25% for more than 7,000 energy-intensive businesses from 2027. This is a positive step forward for UK industry.
The 10-year strategy aims to boost investment, create skilled jobs, and make the UK a more competitive place to do business. It tackles two key barriers which industries face – high electricity prices, currently among the highest in the developed world, and long grid connection waiting times.
As part of the strategy, a new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour. Manufacturing sectors such as automotive, aerospace, and chemicals will benefit from exemptions such as RO (Renewables Obligation), FiT (Feed-in Tariff), and CM (Capacity Market). This announcement will greatly boost UK manufacturers, helping them stay competitive globally.
There’s also good news for the most energy-intensive industries, including steel, glass, and chemicals. Under the British Industry Supercharger, discounts on electricity network charges (NCC) will rise from 60% to 90% from 2026, helping these businesses reduce costs further, protect jobs, and reinvest in the future.
This announcement will come as a welcome relief to many businesses that have faced these challenges for too long.
Eligibility criteria and further details will be set out in an upcoming consultation.
Envantage is monitoring this closely and will keep you updated as more information becomes available. If you’d like to discuss what this could mean for your business, get in touch with our team hello@envantage.co.uk
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