UK lifts EII network charge relief to 90% in Apr 2026
Britain will lift network‑charge compensation for energy‑intensive industries (EIIs) to 90% from Monday 1 April 2026, under regulations backed by Parliament. The instrument also doubles the quarterly claim window to two months, giving finance teams more breathing room to file accurate returns. (statutoryinstruments.parliament.uk)
This sits within the British Industry Supercharger package. EIIs already receive 100% exemptions from Contracts for Difference, Renewables Obligation and Feed‑in Tariffs, plus a 100% Capacity Market exemption. Network‑charge compensation is the third leg of that support, covering transmission, distribution and balancing costs that are a material slice of large‑site electricity bills. (gov.uk)
Legally, the change amends the 2024 scheme by replacing 60% support with 90% and extending the application window from one month to two. In short: more of the network bill is rebated, and there’s longer to evidence it. The measure applies across England, Wales and Scotland. (publications.parliament.uk)
Ministers told MPs the uplift should trim a further £7–£10 per megawatt‑hour from eligible users’ costs, taking the total Supercharger‑related reduction to roughly £65–£87/MWh. Up to £420m a year of price support is expected, with about 550 companies currently in scope. (hansard.parliament.uk)
Funding comes via the EII Support Levy charged to all licensed electricity suppliers. The Lords Secondary Legislation Scrutiny Committee notes suppliers pass these costs on to both business and household customers. The impact assessment points to c.320 EII firms saving £131m a year, while the typical household bill increase is estimated at no more than £1.50 annually. (publications.parliament.uk)
DBT’s modelling suggests raising compensation from 60% to 90% would lower Great Britain’s industrial power prices from around £93/MWh to £86/MWh. That narrows but does not eliminate the gap with France and Germany, where network‑charge discounts for EIIs can reach similar levels. (gov.uk)
For electricity suppliers, this is a margin‑management exercise. Expect higher third‑party cost lines to be priced into non‑EII contracts as levies are recovered, with timing shaped by contract terms and hedging positions. Customer communications and billing system changes will matter as much as raw wholesale curves in the next pricing round. (publications.parliament.uk)
For EIIs, the admin change matters. Quarterly claims remain, but a two‑month window reduces the risk of missing evidence from suppliers and smooths cash flow planning. Teams should calendar claim periods for 2026–27, align invoice data with metered volumes and keep eligibility documentation current to avoid disputes. (publications.parliament.uk)
An illustrative example helps. A chemicals site with £12m of annual network charges previously recovered £7.2m under the 60% design. From April, 90% support would return £10.8m-an extra £3.6m. On 400GWh of annual consumption, that incremental relief equates to roughly £9/MWh on the network‑charge component. The precise benefit will vary by location and load profile.
What to watch next: final guidance on application evidence, how suppliers display the levy on bills, and sector eligibility reviews flagged by ministers. The regulations take effect on 1 April 2026; a promised review of the data underpinning the Supercharger is due this year, which could shape any further adjustments. (statutoryinstruments.parliament.uk)