Government has set out an intention to reduce industrial electricity costs by removing certain policy charges from qualifying businesses' bills. It is a significant proposal for energy-intensive manufacturers and it is not yet in force.
Verification
- Verified as at:
- Source:
- Government response on industrial electricity costs, 16 April 2026
- Last reviewed by:
- Omnium
Figures in this sheet were current at the verification date above. Regulated charges reset each April. If you are relying on a figure, check the source or ask us.
Designed A4 fact sheet, ready to print or circulate.
What is proposed
Status: ProposedThe proposal would remove certain policy costs from the electricity bills of qualifying businesses, reducing their electricity costs by up to a quarter, from 2027.
It is a government response setting out an intended approach. It is not law, the detail is not final, and eligibility has not been confirmed for any individual business.
How eligibility would be tested
Status: ProposedEligibility would be assessed at sector level rather than business by business, using electricity intensity: electricity expenditure divided by gross value added.
The indicated thresholds are above 0.9 per cent for frontier industries and above 2.7 per cent for foundational industries, with sectors identified by their industrial classification code.
The consequence of a sector-level test is worth understanding. A highly electricity-intensive business in a sector that does not qualify would be out, and a less intensive business in a qualifying sector would be in. Your own consumption does not decide it.
How this relates to existing support
Status: LawExisting support already relieves the most energy-intensive industries of a substantial share of certain policy costs, subject to holding valid certification.
The proposal would extend relief to a wider set of businesses rather than replace what exists. A business already holding certification under the current arrangements should establish how the two would interact rather than assuming the new proposal supersedes them.
What to do now
- Establish your industrial classification code and whether your sector appears in the indicated scope. That is the determining factor, not your own intensity.
- If you already hold certification under existing schemes, confirm it is current. Relief that lapses is relief lost.
- Do not build a budget on relief that has not been legislated. Model it as an upside rather than a baseline.
We will tell you what is confirmed and what is not, and we will not describe a proposal as a saving you can bank.
Related sheets
- Non-commodity charges
Taxes, levies and regulated network charges now make up a large share of a business electricity bill, and comparing unit rates alone misses where the cost sits.
- The April reset, and the grid investment behind it
What resets on a business energy bill each April, why network charges are rising, and why this is regulated investment rather than a supplier price rise.
- Contract types, and how a fixed rate is built
The four business contract types, how a supplier assembles a fixed price, and why the wholesale market is no longer the larger part of an electricity rate.
Take this sheet into a meeting
The British Industry Supercharger and industrial electricity costs is available as a designed A4 fact sheet, dated and set for printing or circulation.
If this sheet raises a question about your own sites, speak to us.