The Government’s recent announcement of a £400 million reduction in electricity costs for energy-intensive industries marks a significant development for the UK aluminium sector.
In this piece, Zach Crossland, Head of Energy at Leyton, shares his perspective on what the update means for manufacturers, how eligibility for exemptions and compensation will be assessed, and what businesses should do next to take advantage of the changes.
The Department for Business and Trade (DBT) has announced its long-awaited response to the consultation on changes to the Network Charging Compensation (NCC) Scheme, part of the British Industry Supercharger initiative.
The headline news is positive: DBT will introduce two key reforms – an uplift in relief from 60% to 90%, and an extended application window of two months, doubling the previous timeframe. These changes will take effect from 1 April 2026.
However, because the NCC Scheme compensates businesses 12 months in arrears, eligible Energy Intensive Industries (EIIs) will not see the financial benefit until after April 2027. While the uplift is a welcome boost, energy costs will remain a significant pressure point for EIIs and commercial entities alike in the interim.
There may also be encouraging developments ahead for businesses currently outside the scope of the EII and NCC schemes. Although no formal commitments have been made, DBT has indicated its intention to review eligible sectors and activities within the EII scheme during 2026. This signals a broader ambition within the government’s industrial strategy to support a wider range of businesses. With the Climate Change Agreement (CCA) scheme also expected to expand its eligibility criteria, the landscape for energy cost relief appears to be opening up.
As ever, the challenge lies in navigating the detail. Businesses must understand how these changes apply to them and act strategically to maximise the benefits. To support this, we recommend a five-step energy plan:
1. Baseline – Conduct a full carbon and energy audit to understand where and how energy is used across your operations.
2. Strategy – Review government guidance to identify which schemes your business may be eligible for, now and in the future.
3. Optimise – Submit applications where appropriate, reassess energy contracts, and use audit insights to set reduction targets.
4. Monitor – Build a robust measurement and reporting framework to track usage, respond to policy changes, and support future claims.
5. Adapt – Use insights to inform long-term energy strategy, integrating decarbonisation, resilience, and cost control.
These reforms offer a meaningful opportunity – but only for businesses that act early and strategically.
At Leyton, we support businesses across all these areas – from compliance and due diligence advice to ESG and sustainability planning & reporting. Our team can help ensure your energy strategy is as efficient, compliant, and resilient as possible.
To further support members to understand what the latest news means for their business, Leyton will be hosting virtual drop-in sessions on:
- Thursday 13th November 2025, 10:00 – 16:30
- Tuesday 18th November 2025, 10:00 – 16:30
- As well as an in-person drop-in at the ALFED Business Briefing on 13th November 2025.
If you’d like a free consultation to review or build your strategy, or have your questions about the latest news answered, please contact partner@leyton.com to book a slot during one of our drop-in clinics – or arrange a time that suits you.
