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🗞️ Driving the news: The UK Government has launched a consultation to increase electricity network charge discounts for around 500 of Britain’s most energy-intensive industries from 60% to 90% starting in 2026
• The measure, part of the “British Industry Supercharger” package, is expected to save companies in steel, ceramics, glass and chemicals up to £420 million annually
• This initiative delivers on commitments made in the UK’s modern Industrial Strategy to bring industrial energy costs closer to European competitors and attract new investment
🔭 The context: High industrial electricity costs have long been a competitive disadvantage for UK manufacturing, with energy-intensive sectors paying more than peers in Germany and France
• Since April 2024, the Network Charging Compensation (NCC) scheme has already provided a 60% discount, saving millions monthly
• The new consultation also proposes doubling the application window for businesses and complements other initiatives under the Industrial Strategy, including a British Industrial Competitiveness Scheme (from 2027) and a Connections Accelerator Service to streamline grid access
🌍 Why it matters for the planet: Lowering industrial electricity costs through clean power and improved grid access can enable UK industries to invest more in decarbonisation and electrification
• Competitive pricing supports the viability of domestic steelmaking and other sectors critical to a low-carbon economy
• However, maintaining the balance between affordability and incentivising energy efficiency remains a key challenge as the UK transitions towards clean, homegrown energy sources
⏭️ What's next: The four-week consultation, launched on 18 July, will gather industry feedback on the uplift and procedural changes
• The Government plans to finalise and implement the increased discount in 2026
• Stakeholders will also watch progress on related reforms, including the Industrial Competitiveness Scheme and Planning and Infrastructure Bill, which could reserve grid capacity for strategic, low-carbon projects
💬 One quote: “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.” — Gareth Stace, Director General of UK Steel
📈 One stat: The proposed 90% discount could save eligible industries up to £420 million per year — equivalent to an additional £7–10/MWh reduction in electricity costs
See on illuminem's Data Hub™ the sustainability performance of Tata Steel, ArcelorMittal and their peers
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