Government's Industrial Strategy to cut costs for thousands of businesses

Published

24 June 2025

By

Brook Green Supply

Government's Industrial Strategy to cut costs for thousands of businesses

Brook Green Supply welcomes the Government’s Industrial Strategy, and its renewed focus on supporting businesses with their energy costs.

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24th June 2025, London: Brook Green Supply welcomes the Government’s Industrial Strategy, and its renewed focus on supporting businesses with their energy costs. 

The new British Industrial Competitiveness Scheme – set to launch in 2027 – is a promising step, providing exemptions from Renewables Obligation (RO), Feed in Tariff (FiT) & Capacity Market (CM) to around 7000 businesses from 2027. Eligibility is due to be determined following consultation, but will focus on advanced manufacturing, clean energy, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services, with a review point in 2030. The current funding for this scheme is not clear, and we anticipate that this will form part of the consultation process. 

We also recognise the difficult environment that energy-intensive industries have faced over recent years, and the extension of the Network Charging Compensation scheme is a welcome step towards alleviating these challenges. While EIIs have received 60% relief on network charges since April 2024, this will rise to 90% from April 2026 – likely funded by an extension of the EII Support Levy, though this hasn’t been explicitly confirmed. 

We’re encouraged by the announcement of a Call-for-Evidence on the Corporate Power Purchase Agreement (CPPA) market, which we will be engaging on in due course. When implemented to a highly-professional standard, CPPAs provide a stable, traceable and low carbon option for businesses, but many organisations face significant challenges in adopting them – including credit and volume barriers. Reforms in this area would be welcome, and could help reduce electricity costs for businesses not specifically being targeted by measures announced elsewhere.  

Connections reform remains an outstanding issue for many within the energy sector, and we welcome the renewed focus on it within the Industrial Strategy. 

We also look forward to the REMA consultation outcome, and are confident that a reformed national pricing system will help manage network costs and lower electricity prices for businesses. 

Richard Nicholls, Managing Director of Brook Green Supply, commented: “With the announcement of its 10-year Industrial Strategy, the Government has taken decisive action to tackle the burden of high energy costs on UK industry, removing a key barrier to growth and unlocking new opportunities for investment, innovation, and economic expansion. 

We’re committed to partnering with businesses as they navigate this sea change, and look forward to providing the tailored, cost-effective energy solutions they need to both strengthen operational resilience and enable sustainable growth in a competitive market." 

We’ll keep you updated on the progress of the Industrial Strategy as and when we hear more, but in the meantime, if you have any questions about how the reforms will impact your business, please reach out to your account manager or email sales@brookgreensupply.com
 

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