UK government gives further electricity discount to energy-intensive firms

Around 500 businesses to see annual savings of as much as $550m from 2026.

British companies from sectors like steel, chemicals, cement, glass, and paper will be getting a 90% discount on their electricity network charges.

Part of the UK's industrial strategy, the move represents a further slash in costs for highly energy-intensive businesses, which have been enjoying a 60% discount. Approximately 500 organisations are set to save up to £420m (around $550m) starting April 2026.

Commenting on the "decisive action" by the government, the UK's Business and Trade Secretary Peter Kyle stated: "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."

The reduction, which will be funded through reforms to the power system, is meant to align industrial energy costs in the UK with those in other European markets.

"This will be a major boost for our industry and will help British glass manufacturers compete with cheaper imports from regions that do not bear the same level of cost and regulation," Encirc Glass Managing Director Sean Murphy explained.

"By cutting the costs of energy in this way, the government is helping our industry to support thousands of jobs across the country whilst we make the transition to renewable sources of power."

For Community Union Assistant General Secretary Alasdair McDiarmid, the government's decision is "a huge step in the right direction," given the cost burden on industries like steel. The British Chambers of Commerce's Ben Martin welcomed the promise of cheaper electricity bills as well.

Meanwhile, from 2027, the UK government will also be slashing energy costs by 25% for more than 7,000 businesses in sectors such as automotive and aerospace.