⚡ UK Government Boosts Support for Energy-Intensive Industries

The UK Government has confirmed an uplift in support for Energy-Intensive Industries (EIIs) under the Network Charging Compensation (NCC) Scheme — with compensation for network charges set to rise from 60% to 90%.

From April 2026, eligible businesses will only pay 10% of these network charge costs, rather than 40%, with retrospective application to qualifying periods.

💡 Why This Matters

This uplift is a major boost for UK manufacturers and processors who face global cost pressures and carbon-leakage risks.

• It provides meaningful cost relief for energy-intensive operations.
• It strengthens the UK’s industrial competitiveness.
• It highlights that non-commodity costs — such as network, transmission and system charges — are an increasingly large component of total energy spend.

⚠️ Key Considerations

While the increased support is positive, businesses must remember that:

• Relief will be paid in arrears — companies must still pay full network charges on invoices and claim the rebate later.
• This creates a temporary working capital strain, especially for those with high energy volumes.
• Budgeting and forecasting should account for the timing gap between payment and reimbursement.

🧭 What Businesses Should Do Now

• Check eligibility against sector and intensity criteria.
• Communicate internally to ensure teams understand the rebate timing and cash flow implications.
• Model costs and rebates with finance and energy procurement teams to align budgets and forecasts.
• Plan liquidity to manage upfront network charge payments.
• Monitor updates as the government finalises scheme regulations and application timelines.

The 90% uplift is a clear signal of government commitment to supporting UK industry — but proactive planning is crucial to manage the timing and cash flow impacts effectively.

If your organisation may qualify as an EII, now is the time to prepare.

📩 Contact us at hello@gleg.co.uk to assess your eligibility and build a tailored strategy ahead of April 2026.