Business Secretary Peter Kyle announced that the government will press ahead with plans to increase the discount on electricity network rates for companies in sectors such as steel, cement, glass and chemicals, which employ around 400,000 people in total across the UK, from 60 to 90 per cent.
Around 500 energy-intensive UK businesses will save up to £420 million (~$550.2 million) annually from April 2026, as the government increases discounts on electricity grid rates from 60 to 90 per cent. The measure, which covers sectors such as steel, cement, glass and chemicals, supports 400,000 jobs and complements the British Industrial Competitiveness Plan.
Some of these companies are currently paying the highest industrial electricity prices in the G7, making it difficult to remain competitive on the international stage, which is why the government has taken decisive action to provide this relief and level the playing field for the industry, the Department of Business and Trade said in a press release.
This historic support, delivered at no extra cost to taxpayers, delivers on a crucial promise in the UK’s modern Industrial Strategy launched in June, and follows a four-week consultation on plans for the increased rebate that took place between July and August this year.
The increased discount will also reduce costs for a range of businesses in Scotland and Wales to help them support local jobs and deliver growth, including Tata Steel in Port Talbot and INEOS in Grangemouth, ensuring the benefits are felt across the country.
It builds on the government’s landmark British Industrial Competitiveness Plan announced in the modern industrial strategy, which will reduce energy costs by 25 per cent for more than 7,000 businesses from 2027 in sectors such as aerospace, automotive and chemicals, supporting hundreds of thousands of skilled jobs in these industries.
“British industry deserves a level playing field, and this Government is delivering. We have heard businesses loud and clear, and this historic support will help them stay competitive on the global stage so they can invest and grow here in the UK. This is our Modern Industrial Strategy in action: practical, targeted support that secures jobs, attracts investment and boosts our economy, as part of our turnaround plan.” bBusiness and Trade Secretary Peter Kyle saying.
The Supercharger and the British Industrial Competitiveness Plan will be funded through energy system reforms. The government is reducing costs within the system to free up funding without increasing household bills or taxes, the statement added.
“Our research shows that energy costs remain a major concern, forcing many businesses struggling to pay their bills to raise prices. Energy is an essential business, not a luxury. The promise of cheaper bills for hundreds of energy-intensive businesses by increasing the discount on electricity grid rates is welcome.” Ben Martin, policy director at the British Chambers of Commercesaying.
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