Industrial Strategy takes aim at electricity prices

Up to 7,000 energy-intensive companies could benefit under the British Industrial Competitiveness Scheme. It’s claimed the plans could reduce electricity costs by up to £40 per megawatt hour when the changes come into effect in 2027.

Heavy industry sectors such as steel, chemicals and glass will further benefit from reductions to network costs, with the existing 60 per cent discount via the British Industry Supercharge rising to 90 per cent in 2026. The government said the plans will be funded through ‘the strengthening of UK carbon pricing’.

“For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets” said energy secretary, Ed Miliband.

“As part of our modern industrial strategy we’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors. We’re also doubling down on our clean power strengths with increased investment in growth industries from offshore wind to nuclear.”