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The British Industry Supercharger Roll-Out To Begin

24th January 2024

The British Industry Supercharger was announced by the UK Government in February 2023. Delivery details for the scheme are still being consulted on but roll out is anticipated to begin this year and aims to reduce electricity costs for Energy Intensive Industries (EIIs) by £20/MWh by 2025. The Supercharger outlines support designed to boost the competitiveness of the country’s EIIs.  It will exempt many UK businesses from the increasing costs associated with green obligations, such as capacity market costs, Feed-in-Tariff (FiT), Contracts for Difference (CfD), and the Renewables Obligation (RO). It is an ambitious and well-received initiative, aiming to address the challenge of ensuring UK businesses thrive in a globalised economy whilst meeting the commitments of a green future.

What are EIIs?

EIIs are industries that consume large amounts of energy in relation to their output, for example steel production or chemical plants. These industries are obviously vital to the UK economy, contributing significantly to jobs and our exports. However, their high consumption of energy leaves them more vulnerable to rising energy costs, thus putting them at a disadvantage in comparison to their competitors in countries who may have lower energy costs.

How it works

The new support addresses the challenges to UK business with a three-pronged approach:

  • Renewable Levy Exemption: Increasing the existing subsidy for EIIs on renewable energy levies from 85% to 100%, potentially reducing electricity costs by around £5/MWh.
  • Capacity Market Charges Exemption: Granting EIIs a full exemption from the costs associated with the UK Capacity Market, with an estimated saving of around £5/MWh.
  • EII Network Charging Cost Compensation: This proposed scheme will compensate EIIs for the charges they pay to use the electricity grid, aiming for a total reduction of £10/MWh. Details on this are likely to be released this Spring.

As stated by Emma Jones, Chairwoman of the Federation of Small Businesses, ‘The Supercharger is a game-changer for UK industry. It provides the much-needed support to level the playing field and secure our competitive edge in the global market.’ In this comment Jones encapsulates the view that the Supercharger will help to revitalise British business and ensure they remain competitive on a global scale.

How Inenco can help your business

The British Industry Supercharger is not merely a financial incentive; it represents a strategic imperative for forward-thinking EIIs. Inenco has over 50 years of consultancy experience working in energy and utilities management; responding to the changing needs of our customers. This gives us the expertise and insight to help your business capitalise on the the new Supercharger, by identifying the specific exemptions and incentives applicable to your business, helping your business to achieve savings. Get in touch today to hear how we can help you 08451 46 36 26 or email enquiries@inenco.com.

To stay up to date with the EU CBAM and the future delivery of the UK CBAM, keep an eye on our blog page or follow us on LinkedIn.

Sustainable Energy First, has acquired Inenco.


The acquisition brings together two businesses with one common objective;
to make truly renewable
energy more accessible to businesses of all sizes helping them achieve their Net Zero targets.

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