In April 2024, the Network Charging Compensation Scheme was implemented to support Energy Intensive Industries (EIIs), the UK’s 500 largest electricity consumers. This scheme provided a 60% reduction in network charges related to the use of the electricity grid. Now it is set to rise to 90% from April 2026.
In a further announcement, from April 2027, the largest 7,000 manufacturing firms will receive a reduction of £35 to £40 per MWh on network related charges.
The eligibility criteria for these 7,000 firms are yet to be determined, following a consultation period, due to commence shortly.
Since April 2025, this compensation has been funded by a levy on electricity suppliers, known as the EII Support Levy. The Government expects to fund the additional compensation announced through these levies and proceeds from a newly announced carbon border adjustment mechanism (CBAM) which is due to be in place from January 2027.
While these changes will be welcome news to the UK’s largest consumers, the remaining businesses may see an increase in system charges. However, the exact impact is still unclear and subject to further details from the consultation.
How ConsensusPower can assist you
By using local clean energy, we help clients meet sustainability goals and manage energy costs, ensuring businesses can navigate the energy landscape confidently and achieve long-term resilience.
ConsensusPower’s Peer-to-Peer (P2P) energy trading platform is the cornerstone of our strategy to support businesses with greater control and transparency over their energy use. By enabling each unit of electricity to be traced from source to destination, the platform ensures full traceability and accountability, which is critical for compliance, sustainability reporting and assistance with scheme applications.
This system not only enhances operational efficiency, but also significantly reduces network-related expenses by capturing exemptions from non-commodity charges—often more than half of a commercial energy bill.
Our direct wire solutions further shield businesses from wholesale market volatility, delivering stable and predictable energy costs while reinforcing long-term resilience.
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