UK government unveils plan to cut electricity costs for businesses by 25% by 2027

From Yahoo Finance: 2025-06-23 07:32:00

The UK government unveils a 10-year industrial strategy to reduce electricity costs by up to 25% for over 7,000 businesses by 2027, aiming to unlock investments, create 1.1 million jobs, and establish Britain as a prime business location.

The strategy addresses challenges in the manufacturing sector, such as high electricity prices and grid connection delays, with the British Industrial Competitiveness Scheme offering eligible energy-intensive businesses cost reductions of up to £40 per MWh.

UK Prime Minister Keir Starmer hails the industrial strategy as a pivotal moment for the economy, providing long-term certainty for businesses to invest, innovate, and create jobs while reducing reliance on fossil fuels and ensuring clean power generation.

To support energy-dependent industries like steel and glass production, the government will increase support through the British Industry Supercharger program, offering a 90% discount on network charges starting in 2026 to maintain their competitiveness and preserve jobs.

Energy Secretary Ed Miliband emphasizes the need to lower electricity costs for businesses by reducing reliance on volatile gas markets, investing in clean energy sources like offshore wind and nuclear power to bring down bills for households and businesses in the long term.

In addition to these measures, officials are introducing a connections accelerator service to fast-track access to electrical grids for economically beneficial projects, while the Crown Estate plans to invest up to £400m to strengthen the UK’s offshore wind supply chain, promoting clean energy deployment and local growth opportunities.

Read more: UK’s new industrial strategy to cut electricity costs for business by 25%