UK Government announce increase in relief for Energy-Intensive Industries

The UK government has confirmed an uplift in support for Energy-Intensive Industries (EIIs) under the Network Charging Compensation (NCC) Scheme.

The compensation rate for network charges (including Transmission Network Use of System (TNUoS) charges) is proposed to rise from 60% to 90% for eligible EIIs.

This means that from April 2026, qualifying businesses will only bear 10% of those network charge costs rather than 40% (with retrospective application to eligible periods).

Why this matters:

For energy-intensive manufacturing/processing businesses this is a meaningful boost in competitiveness and cost relief.
It strengthens the strategic offering of UK EIIs who face serious international cost pressure and carbon-leakage risk.
It underlines that non-commodity costs (network, transmission, system charges) are an increasingly significant part of the total energy cost.

What to be aware of:

Although the uplift applies from April 2026, companies will still have to pay the full network charge on each monthly/quarterly invoice as it arrives, and then apply for the rebate/compensation afterwards under the scheme.
That means the relief is in arrears. That creates a temporary working capital burden: the business will pay now, and reclaim later.
For businesses with tight margins and high energy volumes, the significant increases expected in network charge items may still present real cash-flow stress.
It’s essential to factor this into budgets, forecasts and procurement decisions now (even ahead of April 2026).

What to do now:

Check Eligibility: Find out if your business meets the sector and intensity criteria, and can qualify to claim the uplift.
Communicate Internally: Make sure operations, manufacturing & senior leadership understand that although this is positive, it doesn’t immediately eliminate the cost – it defers part of it.
Forecast the Payment vs Rebate dynamic: Engage with your Energy Procurement and Finance teams to model the full level of network charges you will incur, ensuring budgets and forecasts are set in line with business expectations, and they factor in the timing mismatch of charges and reimbursement.

Plan for Liquidity: If you anticipate large network charge bills, ensure you have sufficient working capital or in place to absorb the charges until your rebate arrives.
Stay alert for Scheme details: The government consultation lays out the uplift and process, but final regulations, application windows and administrative timing are key.

The increased uplift to 90% is a strong signal of government support for energy-intensive manufacturing and industrial competitiveness in the UK. But it is not cost-free in timing terms. Businesses must pay the charges now, and claim the relief later.

If your business is an EII or you suspect you might be, now is the time to get a plan in place. Contact us today at info@lcutility.co.uk