UK to raise industrial electricity discounts to 90% from 2026

The UK Government will increase the discount on electricity network charges for the country’s most energy-intensive businesses from 60% to 90%, delivering up to £420 million per year in savings for around 500 firms from April 2026.

• Main action: The Government (announced 31 October by Business Secretary Peter Kyle) will raise the Network Charging Compensation (NCC) Scheme discount from 60% to 90%, expected to save up to £420 million per year for approximately 500 energy-intensive businesses (sectors: steel, chemicals, cement, glass, paper). Implementation: from April 2026.
• Background & related measures: This builds on the Modern Industrial Strategy and the British Industrial Competitiveness Scheme (will reduce energy costs by 25% for over 7,000 businesses from 2027). The Government will fund the Supercharger and British Industrial Competitiveness Scheme via energy system reforms and plans a Connections Accelerator Service to be in force by end of 2025 to streamline grid access.