Overview

• From 2027, over 7,000 energy-intensive manufacturers will be exempt from levies such as the renewables obligation, feed-in tariffs and capacity market charges, cutting costs by up to £40 per megawatt-hour.
• The strategy concentrates on eight priority sectors spanning advanced manufacturing, clean energy, creative industries, defence, digital, financial services, life sciences and professional services.
• A Connections Accelerator Service launching in 2025 is designed to fast-track grid connections and expand available sites for new industrial investment.
• All energy cost cuts will be covered by reforms within the energy system to ensure no rise in household bills or taxes.
• Business groups and trade bodies have applauded the move but warned that the cutbacks may be insufficient to restore UK manufacturers’ competitiveness on the global stage.