Luke Myer, Labour MP for Middlesbrough South and East Cleveland, has welcomed the Government’s decision to increase the Network Charging Compensation discount for energy intensive industries from 60% to 90% from April 2026. The measure is expected to save around 500 top manufacturing firms up to £420 million a year and bring UK network and policy costs closer to European competitors.

UK Steel has called the uplift “greatly welcomed”, but highlighted that steelmakers will not feel the full £14.5 million annual saving until 2027 because compensation is paid a year in arrears. The sector also continues to face higher wholesale electricity prices than France and Germany.

Luke Myer MP said:

“Cutting network charges is the right call and will help protect skilled jobs in East Cleveland and across Teesside. Manufacturers throughout our area need competitive power prices to invest and grow. I want to see support flowing as soon as possible so that firms are not waiting another year for relief.”

Luke has been pressing ministers to reform wholesale pricing to close the remaining gap with European competitors. In July the Government confirmed it will retain a single national wholesale price while delivering a reformed national pricing package, including a Strategic Spatial Energy Plan and changes to transmission charges to give investors clearer, more predictable signals.

“Reforming the national pricing mechanism is a necessary step that sits alongside investment in clean power to cut bills,” Luke added. “Rebalancing wholesale prices, fixing grid bottlenecks and giving investors certainty will cut costs for industry and households, and it will deliver quality jobs in future clean power industries for Teesside.”

Today’s announcement aligns with Luke’s East Cleveland Growth Plan, launched at British Steel Skinningrove in September, which set out the need to tackle high energy costs and rural grid constraints so that local firms can compete. The plan calls for grid upgrades and support for energy costs, as well as wider support for SMEs and manufacturing.

Luke will continue working with ministers, UK Steel and local employers to:

• Accelerate the NCC uplift and explore options that minimise the 2026 to 2027 lag for steel
• Urgently address trade barriers presenting risks to the steel industry
• Deliver reforms to wholesale pricing so UK industry can compete on a level footing
• Prioritise grid investment in East Cleveland to unlock growth and green jobs