Network Charging Compensation Scheme Uplift

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HCWS869

Network Charging Compensation Scheme Uplift

Statement made on 21 July 2025

Statement UIN HCWS869

Statement made by

Sarah Jones

Minister of State (Minister for Industry)

Labour

Croydon West

Commons

Statement

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.

Statement from

Department for Business and Trade

Linked statements

This statement has also been made in the House of Lords

Department for Business and Trade

Network Charging Compensation Scheme Uplift

Baroness Jones of Whitchurch

Parliamentary Under-Secretary of State (Minister for Legislation)

Labour, Life peer

Statement made 21 July 2025

HLWS869

Lords