The government’s new Industrial Strategy may outline steps to cut electricity costs – but it leaves too many businesses behind, according to the Association for Decentralised Energy (ADE).
While ministers trumpeted support for eight high-growth sectors — including clean energy — ADE says the support announced only applies to a narrow slice of the economy and dodges big questions on funding.
From 2027, eligible firms will be exempt from green levies like the Renewables Obligation, Feed-in Tariffs and Capacity Market charges under the new British Industrial Competitiveness Scheme.
But who qualifies — and how it will be paid for — remains unclear.
Caroline Bragg, CEO at ADE was left unconvinced:
This strategy has set out some positive steps towards cutting electricity costs. Despite these steps, details on funding remain vague, a concern heightened by the recent Spending Review.
“Only a small number of select businesses will qualify, sidelining thousands of businesses who desperately need support in the face of rising energy bills – particularly those businesses outside the Government’s industrial clusters.
“Ministers need to wake up, we cannot build a secure, affordable, low-carbon energy system while actively discouraging all the businesses that use it from investing in their future.”
Other moves in the strategy include the launch of a Strategic Sites Accelerator to fast-track planning and grid connections for key industrial locations and a new Connections Accelerator Service to support major energy demand projects.
The strategy also aims to boost demand for large-scale heat pumps through heat networks.
But ADE warns that without a clear, funded plan for reducing industrial energy costs across all sectors, Labour risks missing its own 2030 clean power goals.
