The UK will reduce electricity costs for industry

The government has unveiled its industrial strategy – a 10-year plan to increase investment and develop industries of the future

The UK will reduce green taxes for thousands of businesses to lower high energy costs for industry and stimulate the manufacturing sector. This is according to a statement from the British government.

This step is a key measure in the government’s Industrial Strategy, announced on June 23.

“The modern industrial strategy sets out a 10-year plan to stimulate investment, create skilled jobs, and make Britain the best place to do business by overcoming the two biggest barriers facing industry: high electricity prices and long waits for grid connection,” the government said in a statement.

From 2027, large electricity consumers (aerospace, automotive, and chemical companies) will be exempt from paying several “green” levies, which will reduce their electricity bills by 25% — this applies to more than 7,000 companies. Eligibility and additional details regarding exemptions will be determined after consultations, which will begin shortly.

The government is also increasing support for companies in sectors such as steel, chemicals, and glass. This will include an increase in the network usage discount to 90% from 2026 (currently 60%). This will help around 500 eligible companies.

It is noted that these reforms complement the government’s long-term mission for clean energy.

The government will also introduce a new Connections Accelerator Service to optimize network access for large investment projects. Priority will be given to those that create high-quality jobs and provide significant economic benefits. The service is expected to be operational by the end of 2025. New powers in the Planning and Infrastructure Act, currently before Parliament, may also allow the government to reserve grid capacity for strategically important projects.

The government’s industrial strategy also includes promoting free and fair trade through strong international partnerships, strengthening economic security, expanding access to finance, stimulating innovation, reducing regulatory burdens, and more.

The UK is continuing negotiations with the US on steel as part of a trade agreement. One of the issues is the ownership of companies in the British steel sector.