Commons Sense

House of Commons · General Debate

Draft Energy-Intensive Industry Electricity Support Payments and Levy (Amendment) Regulations 2026 2026-02-04

04 February 2026 · 5 other contributors

Opened by Chris McDonald Lab Parliamentary Under-Secretary of State for Business and Trade

EnergyBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Chris McDonald raised concerns about draft energy-intensive industry electricity support payments and levy (amendment) regulations 2026 2026-02-04 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The draft regulations aim to increase compensation under the network charging compensation scheme from 60% to 90%.
  • The changes will provide additional electricity price support of 7 to 10 per megawatt-hour, bringing the total reduction to 65 to 87 per megawatt-hour.
  • The amendments are expected to deliver up to 420 million of electricity price support annually to energy-intensive industries.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Chris McDonald Lab Parliamentary Under-Secretary of State for Business and Trade

The draft regulations aim to deliver one of the Government’s commitments in the modern industrial strategy: to increase electricity price support to energy-intensive industries through the British industry supercharger. The amendments will increase compensation available under the network charging compensation scheme from 60% to 90%, reducing electricity bills for currently supported energy-intensive industries by a further £7 to £10 per megawatt-hour, bringing the total reduction to £65 to £87 per megawatt-hour, and delivering up to £420 million of electricity price support per annum.

Other contributors (5)
  • Greg Smith Con Mid Buckinghamshire

    The draft regulations will make limited but important amendments to the energy-intensive industry electricity support payments regime. Specifically, they will increase compensation available under the network charging compensation scheme from 60% to 90% from April 2026 and extend the application window from one month to two. However, while welcoming measures that provide greater clarity and modest additional support for industries under pressure, Smith points out that Britain’s industrial electricity prices are among the highest in the world, with costs roughly 50% more than France and Germany.

  • Gareth Snell Lab/Co-op Stoke-on-Trent Central

    Welcoming the scheme, Snell notes that it is funded by a levy on licensed electrical suppliers. This means those not in the supercharger scheme are paying slightly higher bills to subsidise the cost for others in the scheme. He highlights that this system inadvertently results in places like Stoke-on-Trent subsidising steel mills in Scunthorpe and cement manufacturers elsewhere, creating an anomaly where some sectors pay more while benefiting less.

  • Imran Hussain Lab Stoke-on-Trent Central

    Suggests extending the supercharger scheme to include ceramics and lowering the threshold of deductions. Emphasises the importance of supporting foundational manufacturing sectors such as ceramics, which are key for national defence, housing, exports, and advanced technologies. Criticises current energy cost calculations for excluding gas and highlights issues with electrification costs and 20% gross value added (GVA) thresholds.

  • Pippa Heylings LD South Cambridgeshire

    Supports the intention behind the draft regulations but raises concerns about small businesses facing higher energy bills. Advocates for extending support to SMEs and ensuring no cost is passed on to consumers through electricity market reforms.

  • Edward Argar Con Melton and Syston

    Highlights the complexity of implementing the draft regulations and asks the Minister about a general review of eligibility for the supercharger scheme.

Government Response

Chris McDonald

The draft regulations aim to further close the electricity price gap by increasing the level of relief offered through the network charging compensation scheme from 60% to 90%, helping energy-intensive industries such as steel, chemicals, cement, and battery manufacture. The changes will ensure that companies can attract new investment and preserve jobs across Britain’s manufacturing heartlands. Acknowledges support for the draft regulations. Tasks officials to look at including ceramics in the supercharger system due to their gas intensity and desire to electrify. Assures that there will be no increase in non-domestic or domestic bills as a result of the change, funded by changes from RPI to CPI in renewables obligation and feed-in tariff schemes.

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