Energy intensive industries to receive boost in support through the Network Charging Compensation scheme
The level of relief offered through the Network Charging Compensation scheme is to rise from 60% to 90%.
All businesses require power, but energy charges can disproportionately impact the competitiveness of energy intensive businesses.
Numerous support measures have been introduced to address this, with Network Charging Compensation (NCC) scheme one of the headline acts of the 2023 British Industry Supercharger.
On 31 October 2025, Department for Business and Trade committed to uplifting the level of relief offered through the NCC scheme from 60% to 90%.
What is the Network Charging Compensation scheme?
The NCC scheme supports energy intensive industries by providing compensation on eligible network charges.
This is funded by a levy on all licensed electricity suppliers in Great Britain, known as the EII Support Levy.
To cover the costs of this latest decision, the EII Support Levy will be increased from 1 April 2027.
What does this announcement mean in practice?
This uplift in relief, provided for in legislation, will be dated from 1 April 2026.
The government has also committed to extending the length of each NCC scheme application window to two months.
Given this change will require amendments to legislation, the extension of the application windows will take effect from the Q2 2026 application window opening.
Qualifying energy intensive industries submitting a Q2 2026 NCC claim can expect to receive the uplifted compensation after April 2027.
What happens next?
The government intends to lay a Statutory Instrument in early 2026 which will make the necessary amendments to the legislation underpinning the NCC Scheme.
The changes will take effect from April 2026, subject to parliamentary approval.
What does this mean to you?
This announcement marks a valuable opportunity for eligible businesses.
However, determining what support is available to you can be a perplexing space to navigate: Several schemes have launched, ended and resurfaced in this part of the policy landscape.
Your eligibility has nothing to do with the type of energy contract you are on or how you are reducing your emissions – you may even qualify for more than one type of exemption.
Yet, the process does not end at successful application either. Your business must maintain accurate, detailed and current documentation of your entitlement throughout the claim period, and respond to any production and performance requests.
How can Inspired help you?
Inspired’s fully managed levy exemption service can support you with making the most of the schemes like the NCC – from assessing your eligibility to taking care of your ongoing obligations.
If you would like to learn more about levy exemptions, our new guide talks you through the different schemes.
If you would like to discuss how our experts could support you in unlocking potential savings, please email us at [email protected]
