British businesses to save over £400m a year as government slashes electricity costs

Mace | 31st October 2025 | Politics

The UK government will grant around 500 energy-intensive manufacturers a 90 per cent discount on electricity network charges from April 2026, saving up to £420 million a year.

The UK government has confirmed a package of measures that will reduce energy costs for around 500 of the country’s most energy-intensive manufacturers, providing annual savings estimated at £420 million. The initiative, announced by the Department for Business and Trade, will begin in April 2026 and forms part of a broader strategy to strengthen the competitiveness of domestic industry. The relief will apply primarily to companies operating in sectors such as steel, chemicals, glass, paper and cement, which are heavily affected by electricity costs. According to official figures, these industries together employ around 400,000 people across the UK. The plan will deliver a 90 per cent discount on electricity network charges for eligible companies. These charges include costs associated with transmitting and distributing power through the national grid and local networks, which account for a significant portion of industrial energy bills. The reduction is intended to narrow the cost gap...

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