UK Plans £420 Million Electricity Discount to Aid 7,000 Energy-Intensive Manufacturers

The UK government has announced a significant increase in discounts on electricity network charges for energy-intensive industries such as steel, glass, cement, and chemicals, raising the discount from 60% to 90%. This move is expected to save around 500 businesses approximately £420 million annually starting April 2026, helping to address the challenge of some of the highest industrial electricity prices in the G7 and supporting around 400,000 jobs nationwide. The measure forms part of the government's modern Industrial Strategy and will be funded through reforms within the energy system, avoiding additional costs to taxpayers or consumers. While this relief targets the most energy-intensive sectors, a broader British Industrial Competitiveness Scheme is planned to reduce energy costs by up to 25% for about 7,000 firms from 2027, benefiting industries such as automotive and aerospace. Business Secretary Peter Kyle emphasized that the support aims to level the playing field for UK manufacturers globally and encourage investment and growth within the country. Industry leaders and regional officials, particularly in Wales and Scotland, have welcomed the announcement as transformational for local manufacturing and competitiveness.