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Power & Utilities

UK's most energy intensive businesses get £420m of electricity savings

Downing Street has confirmed plans to provide a larger discount on electricity for businesses in the most energy-intensive sectors.

The discount on network charges for around 500 businesses will be increased to 90% from 60%, business secretary Peter Kyle said on Friday, which is estimated to amount to £420 million of support.

It was first announced as part of the government's industrial strategy in the summer, as part of the British Industrial Competitiveness Scheme.

Increased discounts on electricity network charges were for heavy industries like steel and glass, while sectors such as automotive, aerospace and chemicals are due to benefit from exemptions on levies, potentially benefiting close to 7,000 electricity-intensive manufacturers.

"This is targeted support for energy-intensive industries," said Kyle. "That means that British businesses from today are going to be £420 million more competitive.”

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