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Enhanced Financial Aid Program for Energy-Consumptive Industries

Increasing relief provided by the Network Charging Compensation Scheme from 60% to 90% - we're seeking opinions on this proposed enhancement.

Energy-heavy sectors receive boost in Network Charging Compensation program
Energy-heavy sectors receive boost in Network Charging Compensation program

Enhanced Financial Aid Program for Energy-Consumptive Industries

Title: UK Government Launches Consultation on Proposed Increase in Network Charging Compensation Scheme Relief

The UK Government has initiated a public consultation on a proposed increase in relief through the Network Charging Compensation (NCC) scheme. The consultation, which opened on July 18, 2025, and will close on August 15, 2025, invites feedback from a wide range of audiences, including energy intensive industries, energy suppliers, other electricity consumers, trade bodies, consumer associations, devolved governments, and other interested parties.

The consultation is focused on the NCC scheme and aims to gather detailed stakeholder input to fine-tune the policy and delivery of the uplifted NCC scheme. The current level of relief offered through the NCC scheme is 60%, and the proposed increase would raise this to up to 90%.

The consultation is part of a broader strategy to reduce industrial electricity costs and improve competitiveness. It covers Great Britain (England, Scotland, and Wales) but excludes Northern Ireland. The government hopes to support sectors such as steel, ceramics, glass, and chemicals by increasing the relief on network charges from 60% to 90%, starting in 2026.

The consultation is related to a measure under the Industrial Strategy and welcomes feedback from energy suppliers, energy intensive industries (whether currently benefitting or not from the existing scheme), other electricity consumers, trade bodies, consumer associations, devolved governments, and other interested parties. Responses can be submitted online or via email to the Department for Business and Trade at [email protected].

All interested parties are encouraged to participate in the consultation, which is open to all who wish to share their perspectives on the proposed increase in relief through the NCC scheme. The government is looking forward to receiving detailed feedback that will help shape the final policy and ensure the success of the uplifted NCC scheme.

[1] UK Government Announcement: Network Charging Compensation Scheme Consultation Launched [2] UK Government Consultation Document: Network Charging Compensation Scheme Consultation [3] UK Government Industrial Strategy: Supporting Energy Intensive Industries [4] UK Government Consultation FAQs: Network Charging Compensation Scheme Consultation

  1. The consultation invites feedback from various sectors, particularly energy intensive industries, as the UK Government plans to increase relief on network charges, which could have a significant impact on their finance.
  2. The proposed increase in the Network Charging Compensation (NCC) scheme relief, if implemented, could potentially influence the finance and energy sectors, due to the changes in network charging compensation that may affect energy providers and other electricity consumers alike.

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