Energy-intensive businesses are set to save up to £420 million per year on electricity costs, as the UK Government confirms plans to increase the available discount on electricity network charges from 60% to 90%, effective April 2026.

The announcement follows the Government’s consultation earlier this year on how to improve cost competitiveness for the UK’s most energy-intensive industries (EIIs), many of which face higher electricity costs compared to their European counterparts.

This expanded support under the Network Charging Compensation (NCC) scheme will benefit around 500 businessesacross the steel, glass, cement, chemicals, paper and other manufacturing sectors—industries that employ roughly 400,000 people nationwide.

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A Boost for UK Competitiveness

Electricity network charges represent a significant portion of the overall cost of power for large industrial users. These charges cover the cost of maintaining and operating the transmission and distribution infrastructure that delivers electricity across the UK.

By raising the discount from 60% to 90%, the Government aims to:

• Bring UK industrial electricity prices closer in line with European competitors.
• Strengthen the UK’s manufacturing base and safeguard jobs in key strategic sectors.
• Support long-term investment and productivity within energy-intensive industries.

This additional relief is expected to deliver up to £420 million in annual savings, providing welcome support for businesses that have faced sustained cost pressures from high energy prices in recent years.

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How the Scheme Works

The Network Charging Compensation (NCC) scheme provides eligible energy-intensive industries with a discount on certain elements of their electricity bills, specifically, the charges linked to the national grid and local distribution networks.

From April 2026, this discount will rise from 60% to 90%, significantly reducing the amount EIIs pay towards network costs.

The Government has stated that this support will be delivered without additional cost to households or taxpayers, with funding to come from reforms within the wider energy system.

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Who Will Benefit

Eligibility will remain focused on those industries classified as energy-intensive under government guidelines, companies that use large volumes of electricity in production and are exposed to international trade competition.

Examples include:

• Steel and metal manufacturing
• Glass production
• Cement and ceramics
• Chemicals and fertilisers
• Paper and pulp processing

Businesses must hold Energy Intensive Industry (EII) certification to qualify for the relief.

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Why This Matters

This change represents a crucial step towards levelling the playing field for UK manufacturers. For many firms, electricity can represent 20–50% of total operating costs, and network charges are a significant, fixed component of that bill.

Reducing these costs not only enhances competitiveness but also supports investment in innovation, decarbonisation, and energy efficiency, key priorities for UK industry on the journey to net zero.

However, it’s worth noting that while the increased discount will provide valuable relief, network charges make up just one part of overall energy costs. Wholesale energy prices, levies, and balancing charges remain subject to market conditions.

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How Enexus Energy Can Help

At Enexus Energy, we work closely with industrial and manufacturing clients to ensure they’re making the most of available energy schemes, including those designed for Energy-Intensive Industries.

Our team can help you:

• Confirm eligibility for NCC and other EII-related support.
• Conduct forensic audits to uncover historical billing errors or overpayments.
• Review and optimise your current energy contracts to ensure long-term cost savings.
• Explore renewable and efficiency options to further reduce exposure to energy market volatility.

With over 60 five-star reviews and a growing reputation for transparent, expert energy management, Enexus continues to support UK businesses in reducing costs, improving efficiency, and achieving their sustainability goals.

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Looking Ahead

The upcoming increase in the NCC discount is a welcome signal of support for UK industry as the nation continues to balance energy security, affordability, and decarbonisation.

For eligible businesses, now is the ideal time to:

• Review your current energy setup.
• Model the financial impact of this policy change.
• Identify opportunities to reinvest savings into low-carbon and efficiency projects.

Enexus Energy will continue to monitor policy updates and provide insights to help our clients navigate the evolving energy landscape with confidence.

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Need expert guidance on managing your energy costs or exploring eligibility for industrial energy schemes?

👉 Contact Enexus Energy to speak with one of our Energy Consultants.