The Government plans to reduce the environmental charges added to energy bills (known as green levies) for industries that use a lot of electricity.
This change is set to start in 2027.
Who will benefit?
Sectors like steel, ceramics, chemicals and paper will likely be first in line for savings.
The Government says over 7,000 firms could see their electricity costs drop by up to 25 per cent.
What this means for other businesses
These changes are designed to make British manufacturing more competitive and protect jobs in high-energy sectors.
Smaller suppliers could also benefit as costs fall along the supply chain.
Concerns from environmental groups
Some campaigners argue that reducing these levies might slow progress on climate goals.
The full financial impact of the policy is still being worked out, including how the Government will make up the lost revenue.
Preparing for the changes
Although the details are still being finalised, there are a few practical steps you can take now to get ahead.
First, try to stay informed about the Government’s consultation on green levies. Updates may come through trade bodies, industry news or your professional advisers, and keeping an eye on these developments could help you respond quickly once the new rules are confirmed.
It is also a good time to review your energy bills and talk to your supplier about exactly what you are paying and where costs might fall in future.
They may be able to tell you whether your business could be classed as energy-intensive and whether your current tariff is competitive.
If you haven’t already considered it, a fixed-rate energy deal could protect your business from further price increases while policy changes are being worked through.
These won’t suit every business, but they can offer stability in the short term. You might also want to look at energy efficiency upgrades, such as switching to LED lighting, upgrading machinery or improving insulation.
Reducing your usage now could save you money regardless of what happens with levies, and it may help you qualify for future Government support.
To understand how these changes could affect your costs, tax position and longer-term plans, speak to our experts today.
