Enhancement in the Remuneration Plan for Energy-Heavy Industries within the Network Charging Scheme
Government Consults Wide Range of Stakeholders on Proposed Increase in Network Charging Compensation Relief
The UK government has launched a consultation seeking feedback on a proposal to increase the level of relief offered through the Network Charging Compensation (NCC) scheme. The proposed increase, which could reach up to 90%, is part of the Industrial Strategy and aims to align UK electricity costs for energy-intensive industries (EIIs) with those of competing countries.
The consultation, which will close on 15 August 2025, invites views from a diverse group of stakeholders, including EIIs (whether currently benefiting from the scheme or not), energy suppliers, other electricity consumers, trade bodies, consumer associations, devolved governments, and other interested parties.
The government's objective is to enhance industrial competitiveness, prevent carbon leakage, and safeguard jobs in strategic sectors. The policy impact is intended to be cost-neutral to other electricity users, funded through efficiencies in the energy system rather than taxpayer subsidies.
The current level of relief offered through the NCC scheme stands at 60%. The consultation seeks feedback on raising this level to better align UK electricity costs for EIIs with those of competing countries. The feedback process is open to all relevant parties, encouraging a comprehensive understanding of the potential implications of the proposed increase.
Energy suppliers, consumer associations, trade bodies, devolved governments, and other interested parties are encouraged to share their perspectives on the proposed increase in the NCC relief level. The consultation offers an opportunity for these stakeholders to contribute to a more competitive and sustainable industrial landscape in the UK.
[1] Government Consultation on Increasing Network Charging Compensation Relief
[2] Industrial Strategy: Energy Intensive Industries
- The proposed increase in Network Charging Compensation (NCC) relief is part of the UK Industrial Strategy and aimed at aligning energy-intensive industries' electricity costs with those of competing countries, thereby facilitating finance for these industries.
- The UK's energy-intensive industries, finance sectors, and other interested parties are crucial in the consultation on increasing Network Charging Compensation (NCC) relief, as their insights can help shape the future of the industry and finance landscape, ensuring energy sector efficiency.
