Summary
Starting next year, around 500 UK businesses that use a lot of energy, such as those in the steel and glass sectors, will have their electricity network charges reduced significantly. This government initiative is expected to cut their energy bills by a total of £420 million. The goal is to help these companies compete better internationally.
Key Facts
- 500 businesses in the UK will get energy bill cuts totaling £420 million from 2024.
- Companies in industries like steel, glass, and cement will get a 90% discount on electricity network charges.
- Previously, these businesses received a 60% discount on these charges.
- Network charges make up about 20% of a company's energy bill, so a 90% discount equates to an 18% reduction in overall energy costs.
- The initiative aims to make UK businesses more competitive globally by reducing costs.
- Some companies that will benefit include Tata Steel and INEOS.
- The Industrial Energy Agency reported that UK's industrial energy costs were nearly double the average of its members in the past year.
- There are ongoing discussions about profits in the energy sector and potential nationalization.
