The Northern Ledger

Amplifying Northern Voices Since 2018

90% network charge relief for Northern industry from April 2026

From 1 April 2026, energy‑intensive manufacturers across the North will see much deeper help with electricity network charges after Parliament approved the Energy‑Intensive Industry Electricity Support Payments and Levy (Amendment) Regulations 2026. The change lifts relief on network costs from 60% to 90% across Great Britain. (statutoryinstruments.parliament.uk)

Ministers say the uplift sits within the British Industry Supercharger and targets foundation sectors such as steel, chemicals, cement, glass and battery manufacturing - the kinds of plants that anchor jobs from Teesside to South Yorkshire. Peers were told around 550 companies currently benefit from the wider package. (hansard.parliament.uk)

For energy buyers the numbers matter. Government statements in Parliament indicate the 90% rate should trim a further £7–£10 per megawatt‑hour from eligible bills, taking the total British Industry Supercharger reduction to roughly £65–£87/MWh and providing up to £420m a year in support at present usage. (hansard.parliament.uk)

Funding continues to come via the Energy‑Intensive Industry Support Levy on licensed electricity suppliers rather than general taxation. A Lords committee note cited in debate suggests the average household impact is ‘not more than £1.50 a year’, a trade‑off ministers argue is warranted to protect jobs and investment. (hansard.parliament.uk)

For Northern plants that live and die by power prices, this matters. Steel rolling at British Steel’s Teesside Beam Mill, glass at Pilkington in St Helens and process‑industry sites in the NEPIC cluster all carry heavy electricity overheads, with network charges a regular complaint in boardrooms. The uplift is intended to keep investment rooted here rather than drifting overseas. (en.wikipedia.org)

The instrument also gives finance teams a bit more breathing room. Firms now have two months to file claims for a given month, doubling the time to reconcile invoices and metering data. The regulations apply in England, Wales and Scotland and take legal effect on 1 April 2026. (hansard.parliament.uk)

Not everyone is satisfied. While the uplift was broadly welcomed, peers warned that it remains a stop‑gap while Britain’s industrial electricity prices stay higher than competitors - with debate material pointing to UK costs still around £93/MWh versus roughly £60/MWh in France and Germany even after support. (hansard.parliament.uk)

There is also a fairness row inside industry. Because the help is funded by a supplier levy, some energy‑hungry sectors outside the scheme argue they shoulder costs that aid rivals who are in. MPs highlighted ceramics in Stoke‑on‑Trent as an example ministers should revisit. (hansard.parliament.uk)

For the record, these 2026 amendments sit on top of the 2024 regulations made under the Energy Act 2023. The instrument was laid under the affirmative procedure, cleared both Houses and will start on 1 April. For chapter and verse, see the UK Parliament statutory instrument entry and the 2024 base regulations on legislation.gov.uk. (statutoryinstruments.parliament.uk)

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