UK boosts EII electricity support to 90% from April 2026
Here’s the change in plain English. From 1 April 2026, eligible energy‑intensive businesses will be able to claim back 90% of their electricity network charges-up from 60% under the current rules-and they will have twice as long to submit claims. That increase and the longer window sit in the Energy‑Intensive Industry Electricity Support Payments and Levy (Amendment) Regulations 2026, as explained in the Department for Business and Trade’s Explanatory Memorandum. (lordsbusiness.parliament.uk)
For your notes on timing and authority: UK Parliament records that the instrument was laid before both Houses on 12 January 2026, comes into force on 1 April 2026, and is enabled by the Energy Act 2023 with the Department for Business and Trade as the laying body. (statutoryinstruments.parliament.uk)
If you’re teaching or studying this, ‘network charges’ are the fees factories pay to use the national and local electricity grids. The Network Charging Compensation Scheme-part of the British Industry Supercharger-reimburses a slice of those costs for eligible sectors such as steel, chemicals, glass, cement and paper. The scheme is funded by a levy on licensed electricity suppliers rather than by general taxation, as noted by the House of Lords’ Secondary Legislation Scrutiny Committee. (publications.parliament.uk)
What’s being amended? The 2026 rules adjust the scheme created by the 2024 Regulations, which originally set compensation at 60% of eligible network charges and set out how claims are assessed. The new instrument raises that rate to 90% and extends the claim window from one month to two. (legislation.gov.uk)
Why raise support now? Ministers told MPs the higher rate is intended to narrow the price gap with competitor countries and to reduce the risk of ‘carbon leakage’-production moving overseas. They estimated the uplift could be worth an extra £7–£10 per megawatt‑hour, delivering up to £420 million a year in support for around 550 companies that currently benefit. Those points were set out in the Commons committee debate recorded by Hansard. (hansard.parliament.uk)
Let’s make that concrete. If your plant’s eligible network charges for a quarter come to £100,000, the old 60% cap meant a £60,000 payment. At 90%, that becomes £90,000. Same electricity use, but £30,000 more support. For finance teams, that’s real cash‑flow room to plan maintenance, training or kit upgrades.
Who pays for it? The money is raised through the EII Support Levy on all licensed suppliers in Great Britain. Suppliers then pass costs through to domestic and business customers; that’s the model explained to Parliament’s scrutiny committee. (publications.parliament.uk) Because costs can flow through in this way, ministers say they will work to bear down on other levy pressures so non‑EII users don’t see a net increase on bills as a result of this uplift, according to the Explanatory Memorandum. (lordsbusiness.parliament.uk)
Deadlines matter. Claims are made in arrears and, from April 2026, each quarterly window will run for two months rather than one. The Department for Business and Trade says this is to reduce the risk of firms missing out on a whole quarter if paperwork can’t be finalised inside 30 days. (lordsbusiness.parliament.uk)
Where does this apply? The scheme operates across Great Britain’s electricity market-England, Wales and Scotland. If you work in Northern Ireland, remember the electricity market there is separate and has its own arrangements. That Great Britain scope is flagged in the Lords committee material. (publications.parliament.uk)
Teacher’s note and next steps. If you’re in an affected sector, sit down with your finance team now: confirm eligibility, assemble bills and meter data, update budgets to reflect the 90% cap, and set calendar reminders for the longer claim window. The Department for Business and Trade says scheme guidance will be updated before April 2026-worth watching for the fine print you’ll need to submit accurate claims. (lordsbusiness.parliament.uk)