The government will slash green levies to reduce the high cost of energy faced by British business.
Electricity in the UK is more expensive than in many of its European counterparts, and while the market has seen some recent price drops, it’s still more costly than it was before the 2022 price spikes. This is largely because the UK is reliant on gas to provide a consistent base load energy supply, and the fuel has been subject to significant market volatility.
British manufacturers in particular have been hit hard by the prices, while businesses looking to expand or modernise have faced delays when it comes to connecting to the grid.
Last year, UK Steel highlighted how high energy prices had crippled domestic steel producers, which are paying as much as 50% more than competitors in France and Germany.
From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors...