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Draft Energy-Intensive Industry Electricity Support Payments and Levy (Amendment) Regulations 2026 2026-02-04
04 February 2026
Lead MP
Chris McDonald
Debate Type
General Debate
Tags
DefenceEconomy
Other Contributors: 5
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.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
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.
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.
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
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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