Today (16 April 2026), the Labour Government announced a major cut to industrial electricity bills, slashing costs by up to 25% for more than 10,000 manufacturers as part of its Plan for Change.
The move expands the British Industrial Competitiveness Scheme, bringing in thousands more firms across sectors like automotive, aerospace, chemicals and the wider steel supply chain. For businesses that have been battered by sky-high energy costs, it’s a serious intervention – cutting bills, backing jobs, and giving British industry a better shot at competing globally.
Luke Myer MP has raised the issue repeatedly in Parliament – hosting roundtables with rural manufacturers, pushing ministers on grid connections, and pressing the Government to go further to close the energy price gap with international competitors. As Chair of the APPG on Steel and Metals-Related Industries, he has been a consistent voice for Teesside’s energy-intensive industries, including British Steel and smaller SMEs in the region.
While the announcement is a significant step forward and has been welcomed by the steel industry, industry voices have made clear that steelmakers remain exposed to soaring wholesale electricity prices. UK producers are paying significantly more than competitors in France and Germany – putting pressure on jobs and investment.
That’s why Luke is continuing to press for further action to bring down wholesale prices for industry and residents. He is committed to push ministers to tackle the underlying cost of electricity and ensure Britain’s steel industry can compete on a level playing field. The Government’s wider industrial strategy is starting to turn the tide after years of decline, but for places like Teesside, the job isn’t finished yet.
Luke Myer MP said:
“This is a big step in the right direction. Cutting energy bills for thousands of manufacturers will help protect jobs, bring costs down, and back British industry to compete and win.
“But for communities like ours, built on steel and heavy industry, we have to go further. Our steelmakers are still facing energy costs far higher than their competitors overseas.
“I’ll keep pushing the Government to close that gap, back our steelworkers, and make sure Teesside is at the heart of Britain’s industrial future.”
Frank Aaskov, Energy Policy Director, UK Steel, said:
“The BICS will bring welcome relief for parts of the steel supply chain and manufacturers not currently covered by existing schemes and materially lower their energy bills.
But it will not lower electricity prices for steel producers themselves, who remain exposed to exceptionally high wholesale power costs. That problem has intensified sharply in recent months. As a result of the Middle East war, UK steelmakers are now paying nearly 80% more for electricity than competitors in France and Germany, up from around 25% previously. This is happening despite the support already in place and reflects the UK’s continued exposure to gas‑driven electricity prices.
“To make the Steel Strategy a success and deliver the Government’s industrial and decarbonisation ambitions, additional measures are now essential. That means targeted action to bring wholesale electricity prices into line with our European competitors that gives industry the confidence to invest.”