Network Charging Compensation Scheme Uplift

Sarah Jones Excerpts

Monday 21st July 2025 Written Statements

[The Minister for Industry (Sarah Jones)]

I can today announce to the House that the Government are taking the next step in delivering one of the commitments made in our modern industrial strategy, by beginning a consultation which will seek industry views on increasing the level of relief offered through the network charging compensation scheme from 60% to 90%. It will also explore doubling the window which businesses have to apply for support through the scheme from one month to two.

In recent years, British energy-intensive industries have faced the steepest industrial electricity prices in Europe, even with existing Government support schemes applied, primarily due to a long-term disparity in network and policy costs. In the modern industrial strategy, the Government identified that high electricity prices remain a significant barrier for growth and investment for critical energy-intensive industries across the UK.

If enacted, the uplift in the NCC scheme will provide over £100 million in additional electricity price relief to key industrial sectors. Around 500 of the UK’s most energy-intensive businesses across sectors such as steel, chemicals, glass and ceramics will see their cost of electricity reduce by an estimated £7 to £10/MWh from 2026, helping to bring them more in line with European competitors.

This measure will reinforce the fact that the UK is a great place to do business. It will help secure jobs and attract new investment into the UK as part of the plan for change. It will protect our foundational manufacturing sectors from the risk of carbon leakage, while helping to unlock investment in dynamic new sectors such as gigafactories, which will be critical to the UK’s future transition to net zero.

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