Westminster Policy News & Legislative Analysis

GB EII electricity support lifted to 90% from 1 April 2026

Great Britain will raise electricity support for eligible energy‑intensive industries to 90% of network charges from 1 April 2026 and extend the application window to two months, under the Energy‑Intensive Industry Electricity Support Payments and Levy (Amendment) Regulations 2026. (publications.parliament.uk) The instrument was laid on 12 January 2026, comes into force on 1 April 2026, and is enabled by sections 211–212 of the Energy Act 2023. (statutoryinstruments.parliament.uk)

How the deadline moves. Regulation 7(1) of the 2024 Regulations required applications within one month from the last day of each quarter; the 2026 instrument replaces that with two months. For the April–June 2026 quarter, claims can therefore be submitted up to 31 August 2026 where an EII certificate covered the month claimed. (legislation.gov.uk)

What changes in the percentages. Under Regulation 8(2) of the 2024 Regulations, the EII support payments administrator publishes an estimated levy fund as a set percentage of all sums applied for; this, and the individual entitlement under Regulation 13(2), were both 60% and will now be 90% from 1 April 2026. (legislation.gov.uk) ‘Network charges’ for these purposes include distribution and transmission use‑of‑system and connection charges, so the uplift applies across those cost elements. (legislation.gov.uk)

Funding and timing for suppliers. The scheme is financed through a levy on all licensed electricity suppliers in Great Britain. Because the ‘levy month’ is the same month as the claim month in the following year, higher support for April 2026 claims flows into supplier levy notices in April 2027. Elexon Ltd remains appointed as both the EII support payments administrator and the EII levy administrator. (publications.parliament.uk)

Scale and expected impact cited by ministers. In the House of Lords, the Government said raising the network‑charge compensation from 60% to 90% would cut eligible EIIs’ electricity bills by £7–£10/MWh and could deliver up to £420 million of annual support, with around 550 companies currently benefiting across the wider supercharger measures. (hansard.parliament.uk)

Distributional effects noted by Parliament. The Secondary Legislation Scrutiny Committee reported the draft instrument ‘of interest’, noting Impact Assessment estimates that around 320 EII businesses would save £131 million a year and that average household bills could rise by no more than £1.50 annually through levy pass‑through. (publications.parliament.uk) Ministers told peers they will bear down on system costs so domestic and non‑domestic consumers do not see a net increase from the uplift. (hansard.parliament.uk)

Interaction with the retail price cap. Ofgem has introduced a Network Charging Compensation allowance within the default tariff cap to cover suppliers’ NCC scheme costs-relevant as suppliers plan for the 2027 levy year when the 90% rate first feeds through to bills. Government’s consultation response confirmed the 90% rate applies from 1 April 2026 and indicated suppliers would have notice for the corresponding uplift in the EII Support Levy from April 2027. (ofgem.gov.uk)

For claimants, the application content remains unchanged. An EII certificate must cover the whole of the month claimed; applications must set out network charges paid and include director confirmation or other acceptable evidence of payment. The EII support payments administrator pays entitlements within 10 working days after the end of the corresponding levy month. (legislation.gov.uk)

Key operational dates now follow a clear sequence. Commencement is 1 April 2026; the first estimate reflecting the 90% rate for April 2026 claims is due on the first working day of October 2026; levy obligations for those April 2026 claims then fall in April 2027. The measures sit within the British Industry Supercharger framework to narrow the GB–EU industrial electricity price gap. (legislation.gov.uk)