Electricity Bill Reductions by 2027 Included in UK’s 10-Year Growth Plan
Electricity bill reductions are set to take effect for thousands of businesses across the United Kingdom from 2027, following the government’s updated industrial strategy. The initiative aims to reduce operating costs for energy-intensive firms and enhance access to essential infrastructure, such as the electricity grid.
The ten-year plan focuses on addressing long-standing challenges in British industry, including high energy costs and delays in securing power connections. Under the newly proposed British Industrial Competitiveness Scheme, over 7,000 manufacturing firms could see electricity bills reduced by up to 25%.
The reduction would be achieved through partial exemption from government-imposed levies on electricity, such as the Renewable Obligation and Feed-in Tariff. These changes are designed to align UK industrial energy costs more closely with those in other countries.
Support for Energy-Intensive Sectors
A separate measure under the British Industry Supercharger programme will extend support to energy-intensive sectors, including steel, ceramics, glass, and chemicals. Starting in 2026, eligible companies will receive increased discounts, which could go up to 90% on electricity network charges. Currently, these businesses receive a 60% discount.
Approximately 500 companies are expected to qualify for the expanded support, which aims to ease operational costs in sectors with high energy demand.
Infrastructure and Grid Connection
Alongside energy pricing changes, the government plans to enhance access to grid infrastructure. A new Connections Action Plan has been introduced, and by the end of 2025, a Connections Accelerator Service will prioritise projects with significant economic potential.
The forthcoming Planning and Infrastructure Bill also proposes new powers to reserve electricity grid capacity for nationally essential developments, which could help reduce project delays.
Alignment with Long-Term Goals
These reforms are part of a broader strategy to encourage investment in UK industry while also supporting energy security and sustainability. The government’s plans are designed to support industrial growth without adding to the cost burden on households or taxpayers.
According to official estimates, the strategy could support the creation of up to one million jobs and attract around £25 billion in investment. A consultation on the specific eligibility criteria and implementation timeline is expected later in the year.
