Energy cost cuts to save UK businesses over $550 mn

Business secretary Peter Kyle announced that the government will move ahead with plans to increase the discount on electricity network charges for businesses in sectors like steel, cement, glass, and chemicals, which employ around 400,000 people in total across the UK, from 60 to 90 per cent.

Some of these businesses currently pay the highest industrial electricity prices in the G7, making it harder to stay competitive on the international stage, which is why the government has taken decisive action to deliver this relief and level the playing field for industry, the department for business and trade said in a press release.

The landmark support, which is being delivered at no extra cost to taxpayers, fulfils a crucial promise in the UK’s modern Industrial Strategy launched in June, and follows a four-week consultation on the plans for the increased discount which ran between July and August this year.

The increased discount will also slash costs for a range of businesses across Scotland and Wales to help them support local jobs and deliver growth, including Tata Steel at Port Talbot and INEOS in Grangemouth, ensuring the benefits are felt right across the country.

It comes on top of the government’s landmark British Industrial Competitiveness Scheme announced in the modern industrial strategy, which will slash energy costs by 25 per cent for over 7,000 businesses from 2027 in sectors like aerospace, automotive and chemicals, supporting hundreds of thousands of skilled jobs in these industries.

“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. This is our Modern Industrial Strategy in action: practical, targeted support that secures jobs, attracts investment and drives our economy forward, as part of our plan for change,” business and trade secretary Peter Kyle said.

The Supercharger and British Industrial Competitiveness Scheme will be funded through reforms to the energy system. The government is reducing costs within the system to free up funding without raising household bills or taxes, the release added.

“Our research shows energy costs remain a major concern, forcing many businesses who are struggling to pay their bills to raise prices. Energy is a business essential not a luxury. The promise of cheaper bills for hundreds of energy-intensive firms through increasing the discount on electricity network charges is welcome,” Ben Martin, policy manager at the British Chambers of Commerce, said.

ALCHEMPro News Desk (RR)