Referral of the proposed modified Network Charging Compensation Scheme by the Department of Business and Trade
Source: gov.uk (2025-11-14)

The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department of Business and Trade (DBT) concerning its proposed modified Network Charging Compensation Scheme.

Administrative timetable

Request from DBT

13 November 2025: The SAU accepted a request for a report from DBT concerning the proposed modified Network Charging Compensation (NCC) Scheme. This request relates to a Scheme of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of the DBT’s assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the scheme provided by DBT

Energy-Intensive Industries (EIIs) are businesses in sectors whose energy costs constitute a significant percentage of their overall operating costs. In response to high electricity prices, DBT delivered the British Industry Supercharger in 2024.

This package of measures comprised:

increasing the exemption level provided via the existing EII Exemption Scheme on Feed in tariffs, Contracts for Difference and the Renewables Obligation from 85% to 100%

implementing a 100% exemption from the indirect costs of funding Capacity Market Charges

providing relief on 60% of network charging costs through the Network Charging Compensation (NCC) Scheme

However, since the implementation of the Supercharger, subsequent evidence has emerged to indicate the high industrial electricity prices remain a burden for EIIs. A number of businesses and trade organisations have recommended that a higher level of compensation would be needed if the government’s objective was to bring electricity costs for EIIs in Great Britain closer in line with those charged in competitor countries.

As part of the UK’s Modern Industrial Strategy (https://www.gov.uk/government/collections/the-uks-modern-industrial-strategy-2025), DBT announced a proposed increase in support for the most energy intensive industries eligible for the British Industry Supercharger package, with an uplift of the NCC Scheme from 60% to 90% from 1st April 2026. DBT is not proposing any modification to the other two measures comprised in the British Industry Supercharger or to the eligibility criteria.

This referral relates only to the NCC scheme as modified by the uplift to 90% relief. The proposed modification to the NCC scheme remains linked to the wider package of subsidies provided by the British Industry Supercharger through a common policy objective and shared eligibility criteria.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the [name of proposed subsidy/scheme], please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to us at xxx@xxx.xx (mailto:xxx@xxx.xx), copying the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx)

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DBT using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- SAU project team: xxx@xxx.xx (mailto:xxx@xxx.xx)
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)