UK Unveils 10-Year Energy Bill Relief Strategy

The UK government has announced a 10-year industrial strategy to boost economic growth by cutting electricity bills by up to 25% for more than 7,000 energy-intensive businesses, including those in automotive, aerospace, chemicals, steel, and glass, starting in 2027. The British Industrial Competitiveness Scheme will exempt these firms from green levies such as the renewables obligation, feed-in tariffs, and the capacity market, potentially reducing electricity costs by up to £40 per megawatt hour. Additionally, about 500 of the most energy-intensive firms will see their network charge discount increased from 60% to 90% from 2026. The strategy includes measures to accelerate grid connections and provide sector-specific support for advanced manufacturing and clean energy. The government claims this plan will create over one million well-paid jobs within a decade and asserts that it will not increase household bills or taxes. Business groups and trade unions have welcomed the move, while some critics argue it acknowledges the high costs of net zero policies for industry.