From today, 1 April 2026, changes to the UK’s Network Charging Compensation (NCC) scheme will come into play. While headlines suggest widespread relief for business energy customers, the reality is far more targeted. The uplift from 60% to 90% compensation applies only to specific sectors, not the wider UK business community.
At Procure Smart, speed, clarity and transparency matter, especially when policy shifts can be so easily misunderstood. Here’s what the NCC uplift means, who benefits, and what your business should do.
What’s happening?
The Government is increasing the NCC (Network Charging Compensation) relief rate from 60% to 90%. This scheme exists to soften the blow of electricity network charges on high‑consumption businesses. For qualifying organisations, this could meaningfully reduce one component of their bills.
However, this is not a general reduction in energy prices. NCC covers network charges only, not wholesale energy costs, supplier pricing or gas usage.
So, while 90% relief sounds brilliant, it touches only one part of the overall energy bill.
Which businesses qualify?
Relief is reserved for those with official Energy Intensive Industry (EII) status. So, that’s businesses operating in sectors where electricity usage is both high and essential to production. Industries typically include:
- Steel
- Chemicals
- Glass
- Cement
- Ceramics
- Paper
In total, only around 500 UK businesses are expected to receive support through the uplift.
If your organisation is not EII‑classified, this change will not apply to you, no matter your consumption, contract type, or business size.
Why is the Government increasing NCC Relief?
British energy‑intensive industries have long faced some of the highest industrial electricity prices in Europe, driven largely by network and policy costs. The uplift aims to:
- Reduce this competitiveness gap
- Protect domestic heavy industry
- Support long‑term investment and jobs
- Lower the risk of carbon leakage to overseas markets
This policy targets a specific economic challenge: keeping the UK’s foundational industries viable. For most UK businesses, the NCC uplift will not reduce their energy bills at all.
If you don’t qualify, what should you do?
If policy support isn’t coming your way, there are still smart ways to control business costs.
1. Smarter Procurement
Contract timing, structure and risk tolerance matter more than ever. Managing volatility through strategy is key.
2. Eliminating Operational Waste
Out‑of‑hours usage, inefficient equipment and unseen baseload issues remain some of the biggest drivers of unnecessary spend.
3. Improving Visibility and Control
Understanding your energy usage is often the difference between standing still and gaining ground. Look out for our new monitoring and tracking tool, SmartVu, coming soon…
4. Preparing for a More Electric Future
Government policy increasingly rewards electricity‑intensive sectors. On‑site generation, demand flexibility and renewables integration will become essential tools. Our turn-key Renewables experts can help find the solution for you. Find out more.
How Procure Smart can help your business
We educate UK businesses so they can act quickly, confidently and intelligently.
If you want clarity on whether NCC applies to you or need a smart way to control your energy costs, we’re here to help. Get in touch today.
