Cost-cutting timescales for energy-intensive manufacturers may be too late
Reading time: 1 minute approx.
Posted by: Melanie
Plans in the Industrial Strategy to drastically cut electricity costs by 2027 may be too late for some under-pressure manufacturers battling to remain competitive.
The new British Industrial Competitiveness Scheme was announced today and promises to reduce electricity costs by £35-40/MWh.
Energy specialist Joe Collison, managing director of CES which works with manufacturers to develop renewable systems, says manufacturers need support with rising costs now.
“The full effect of this announcement won’t be felt until 2027 – this may be too late for many manufacturers.
“For energy-intensive businesses, there’s somewhat earlier relief coming through the enhanced Network Charging Compensation scheme, which will increase from 60% to 90% starting in 2026.
“But this means most manufacturers will need to navigate high energy costs for at least another 12-18 months before seeing substantial relief.
“While the £1 billion Clean Energy Supply Chain Fund should help build domestic capacity in renewables relatively quickly, the direct impact on electricity bills will take longer to materialise.
CES designs and installs renewable solutions which can power energy-hungry operations during peak times, provide backup during outages, and help schedule production to match optimal energy generation periods.
Joe added: “At CES, we’ve seen firsthand how supply chain constraints have hindered deployment and increased costs across renewable projects.
“This targeted investment should help build domestic manufacturing capability, reduce our reliance on imports, and ultimately bring down the cost of the clean energy transition.”
Joe added that the strategy also addressed grid connection delays through the new Connections Accelerator Service.
“This has been a major bottleneck for many of our clients, with some projects facing decade-long waits for grid capacity,” he added.