Minister for Industry (): I can today announce to the
House that the government is 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 (NCC) 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 (EIIs) 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 £100m
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 £7-10/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, whilst helping to unlock investment in dynamic
new sectors such as gigafactories, which will be critical to the
UK's future transition to net zero.
