Government Promises Business Energy Reform, But Is Help Coming Soon Enough?

The UK government has announced a series of energy reforms with a view to long-term change. But for most commercial users, particularly high-usage or multi-site businesses, the impact will be minimal in the short term. Support is narrow, relief is delayed and the burden of action still sits squarely with businesses.

Here’s a clear view of what’s changing, who stands to gain, and what you can do now to take back control.

What’s Changing, and When?

The key announcements include the launch of Great British Energy in 2025 and confirmed changes to the Energy Intensive Industries (EII) scheme, which will see enhanced discounts on net zero levies and electricity network charges by 2026.

While the direction of travel is positive, these measures offer limited near-term benefit, and they don’t address some of the more immediate issues driving up business costs.

Great British Energy: Big Vision, Limited Commercial Value

Great British Energy (GBE) is a state-backed investor set to launch in 2025, with £8.3 billion allocated over ten years to support UK-based renewable generation projects.

While this sounds like a bold step toward energy independence, the investment averages just £830 million per year, relatively modest compared to the scale of private sector investment already under way.

Crucially, GBE is not a supplier. It won’t provide business tariffs, support procurement, or reduce standing charges. It also won’t solve current commercial pain points like long grid connection delays or inflexible contract terms.

£60 Billion Infrastructure Bill, Funded by You

To meet the UK’s renewable energy targets, far more than GBE’s initial funding will be required. The National Grid anticipates that around 5,500km of new grid infrastructure is needed over the next five years , that’s double the capacity added in the previous decade.

The total infrastructure upgrade bill? An estimated £60 billion.

This investment will be recouped from consumers over time, built into the non-commodity charges that already make up more than half the cost of a typical commercial energy bill. In short: the ambition is high, but the cost will be carried by businesses and households alike , whether or not they directly benefit from new capacity.

So while GBE may help catalyse renewables at a national level, it won’t bring short-term savings, or ease the operational and financial pressures facing commercial energy users right now.

Confirmed: 90% Network Charge Relief for Eligible EII Firms

From April 2024, businesses who were accepted into the Energy Intensive Industries (EII) scheme are fully exempt from key net zero levies, including:

• The Renewables Obligation (RO)
• Contracts for Difference (CfD)
• Capacity Market (CM)

From April 2026, qualifying firms will also receive a 90% discount on electricity network charges, up from the previous 60%, a potentially significant cost saving for high-usage operations.

If you haven’t applied yet, you haven’t missed your chance. Applications for EII certificates are ongoing, and businesses gaining approval mid-year can still apply for upcoming compensation windows.

How and When to Apply

There are two key steps involved:

1. Apply for an EII Exemption Certificate through the Department for Business and Trade (DBT). This confirms your eligibility based on sector and energy intensity.

2. Once approved, apply to the Network Charging Compensation (NCC) Scheme to receive quarterly relief on your electricity bills.

Deadlines to Know

• The NCC scheme runs on a quarterly application cycle, with windows opening at the end of each quarter. For example:
  • Q2 window: June 30 – July 31
  • Q3 window: September 30 – October 31
  • Q4 window: December 31 – January 31, 2026

• Your EII certificate must be in place before submitting for NCC relief, so early preparation is key.

Understanding Eligibility

To qualify, your business must:

• Operate in a sector listed under approved SIC or NACE codes, and
• Demonstrate that energy costs for that activity exceed 20% of Gross Value Added (GVA)

There’s flexibility in how this is assessed:

• Mixed-use operations can qualify if energy consumption in the eligible activity is separately measured.
• Site-level or group-level applications may be accepted, provided reporting is clear and distinct.
• Aggregation is permitted across qualifying business units or sites.

Why Bills Are Still High Even as Prices Fall

Although wholesale prices have stabilised, many businesses are still seeing stubbornly high bills. That’s largely due to non-commodity costs, including system charges and net zero levies that fund infrastructure and policy schemes.

These charges now make up more than half of a typical commercial bill, and many are wrapped into standing charges that apply regardless of usage.

That means even if your consumption drops, your costs may not. And with standing charges increasing across much of the market, high fixed costs are eroding savings even in energy-efficient operations.

Who Stands to Benefit, and Who Doesn’t?

The reforms will benefit a small number of businesses that meet specific industrial and energy-intensity criteria. These businesses, mostly in heavy manufacturing, steel, glass and chemicals, are the focus of the EII scheme.

For others:

• There’s limited support for SMEs in logistics, education, hospitality or food production.
• There’s no policy to improve standing charge transparency or introduce caps.
• And grid delays remain a key barrier to renewable self-generation and EV infrastructure rollouts.

What the Current Policy Overlooks

While some steps are being taken for select industries, there are still gaps for the wider commercial market:

• Standing charge reform is off the table, despite mounting pressure from businesses.
• Grid flexibility and connection delays remain unaddressed.
• There’s no transitional support for Scope 3 emissions reporting, despite its growing influence in procurement frameworks and supply chain due diligence.

What You Can Do Now

Regardless of policy timelines, there are steps you can take now to reduce risk and build resilience:

• Check your eligibility for EII and don’t assume you’re excluded based on SIC code alone.
• Start preparing financial and energy data, approval relies on accurate documentation.
• Align contract end dates to improve future buying power.
• Benchmark standing charges and challenge suppliers where rates seem excessive.
• Use energy monitoring to detect out-of-hours waste and poor asset performance.
• Plan solar and EV projects early, grid applications can take 6–18 months.
• Consider flexible contracts if your operations are seasonal or variable.

How Tritility Can Help

At Tritility, we work with energy-intensive businesses.

We can:

• Assess and guide your EII application process
• Benchmark and review your non-commodity charges
• Implement circuit-level monitoring to spot inefficiencies
• Support solar and EV projects from feasibility to grid application
• Unify procurement across sites and suppliers

When government support isn’t enough, or isn’t available to you, we help you take action that delivers real savings. Want to speak to an energy expert? Get in touch.