Thousands of businesses to benefit from lower energy bills

Thousands of businesses are to benefit from lower energy costs under the Government’s new industrial strategy.

Ministers said British manufacturers currently pay some of the highest electricity prices in the developed world while businesses looking to expand or modernise have also faced delays when it comes to connecting to the grid.

From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses. They will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market.

Eligibility and further details on the exemptions will be determined following a consultation which will be launched shortly. A new Connections Accelerator Service will also streamline grid access for major investment projects.

Energy Secretary Ed Miliband said: “For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets.

“As part of our modern industrial strategy we’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors.”