More than 7000 British factories are set to see their electricity bills slashed by up to 25% from 2027, as the Government unveiled its new Industrial Strategy last week. British manufacturers currently pay some of the highest electricity prices in the developed world, but the new British Industrial Competitiveness Scheme will cut electricity costs by up to £40 per MW hour for electricity-intensive businesses in sectors like automotive and aerospace.

These firms will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market. The Government is also increasing support for the most energy-intensive firms – like steel plants – by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger. Such businesses currently get a 60% discount, but from 2026, it will increase to 90%.

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