GLEG UK Energy Market Update…
November 3, 2025
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.