Hundreds of energy-intensive businesses to see lower bills

Hundreds of energy-intensive businesses in the UK are to save up to £420m on bills under Government plans.

A four-week consultation has been launched on plans to increase the discount on businesses’ electricity network charges from 60% to 90%.

The Government said the move would bring the UK’s industrial energy prices in line with European competitors, helping secure jobs and attract new investment as part of the Plan for Change.

Business Secretary Jonathan Reynolds said: “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.”

Network charges are already discounted by 60% for some of the UK’s biggest industrial businesses through the Network Charging Compensation scheme since April 2024, saving businesses millions of pounds every month.

The proposals in the consultation 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.