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From April 2026 the UK’s most energy-intensive businesses are set to save up to £420 million per year on electricity costs, as the government confirms plans to increase the available discount on electricity network charges, from 60% to 90%.
The uplift to the Network Charging Compensation scheme will be available to around 500 industrial firms in the UK, including steel, chemicals, cement, glass and paper. The government estimates these businesses collectively employ around 400,000 people. Some of these businesses currently pay the highest industrial electricity prices in the G7, making it harder to stay competitive on the international stage.
The government says the support brings UK industrial energy costs in line with European competitors to protect jobs and attract new investment. It fulfils a promise in the UK’s modern Industrial Strategy launched in June 2025 and follows a four-week consultation on the plans for the increased discount which ran between July and August this year.
About the Network Charging Cost Compensation (NCC) scheme
All industrial energy users pay a levy on their bill towards the costs of the electricity grid. This money goes towards building, maintaining, running and upgrading the GB electricity networks.
The NCC was implemented in April 2024 to offset some of these costs to EII businesses. Businesses can currently get compensation for up to 60% of network charges. Today’s announcement (31 October 2025) confirms that this discount will increase to 90% in April 2026.
Additional support
The news comes on top of the government’s new British Industrial Competitiveness Scheme announced in June, which will exempt some firms from paying Renewable Obligation, Capacity Market and Feed In Tariff charges. The government says this will slash energy costs by 25% for over 7,000 businesses from 2027 in sectors like aerospace, automotive and chemicals.
The government says these schemes will be funded through reforms to the energy system, rather than coming from taxpayer funds.
Business and Trade Secretary Peter Kyle said, “British industry deserves a level playing field – and this government is delivering it. We’ve heard businesses loud and clear, and this landmark support will help them stay competitive on the global stage so they can invest and grow here in the UK.”
The NCC scheme uplift has been welcomed by industrial businesses. Encirc Glass Managing Director Sean Murphy said, “This will be a major boost for our industry and will help British glass manufacturers compete with cheaper imports from regions that do not bear the same level of cost and regulation.”
Further advice
Any business with an EII certificate may apply for an NCC payment as long as it has held the certificate for a whole month. Payments are not made automatically, and companies need to apply afresh every quarter.
For advice on Network Charging Compensation scheme eligibility and how you can apply, get in touch with Sustainable Energy First via the form below. You can also read our guide to government support for energy intensive industries.
