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Welsh industries to see major cuts in energy bills under UK Government plan

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Steel, cement and chemical plants among those set to benefit from landmark support scheme

WELSH businesses are set to benefit from a major cut in electricity costs after the UK Government confirmed new support for the country’s most energy-intensive industries.

From April 2026, around 500 UK companies will save up to £420 million a year through the Government’s Network Charging Compensation Scheme, which increases the discount on electricity network charges from 60% to 90%.

The move forms part of the UK’s modern Industrial Strategy and aims to bring industrial energy prices in line with those of major European economies.

Major boost for Welsh industry

Welsh firms including Tata Steel in Port Talbot, Brecon Carreg in Llandeilo, Amcor Flexibles in Swansea, Kronospan near Wrexham, and Vishay in Newport are among those expected to benefit.

Tata Steel, currently building a new electric arc furnace in Port Talbot, says the investment will reduce CO₂ emissions and secure around 5,000 jobs once complete.

Brecon Carreg, which bottled more than 50 million litres of water last year, is also set to gain from lower electricity network costs.

The Government says the discount will help safeguard vital industries such as steel, chemicals, glass, cement and paper, which together employ around 400,000 people across the UK.

‘Level playing field for British industry’

Business and Trade Secretary Peter Kyle said: “British industry deserves a level playing field – and this government is delivering it. This landmark support will help them stay competitive on the global stage so they can invest and grow here in the UK.”

Welsh Secretary Jo Stevens added: “We are backing our key Welsh industries to drive economic growth, boost investment and create well-paid jobs. By providing cheaper bills to key sectors like manufacturing and steelmaking, while developing energy sources of the future such as floating offshore wind, the UK Government will make Wales one of the best places to invest and do business.”

Complementing Welsh innovation

Cabinet Secretary for Energy Rebecca Evans MS said the support would complement Wales’ existing focus on innovation and skills:
“Cheaper energy means stronger investment, more opportunities, and better jobs. Once again we see the benefits of being a partner in a strong United Kingdom.”

Aligning prices with Europe

The Network Charging Compensation Scheme is designed to cut the cost of accessing the UK’s electricity grid for energy-intensive users, bringing prices closer to those seen in France and Germany.

The Government is also launching a new Connections Accelerator Service by the end of 2025 to speed up grid access for major projects, supporting faster investment and job creation.

A full list of Welsh companies eligible for the scheme includes Tata Steel, Kronospan, WEPA UK, Dow Silicones, Plastipak UK, Montgomery Waters, Cabot Carbon, and others across key manufacturing sectors.

 

Business

Pembroke Power Station National Grid shutdown power plans

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A CALL to site specialist diesel generators at Pembroke Power Station to help keep the lights on in the event of a National Grid shutdown has been lodged with county planners.

In a screening application to Pembrokeshire County Council, RWE Generation UK PLC, through Ove Arup & Partners Ltd, wants to site up to six containerised diesel generators, diesel storage tank(s) and electrical connections at Pembroke Power Station, Pwllcrochan, near Pembroke.

The application site is within the site of the existing Pembroke Power Station, a combined-cycle gas turbine (CCGT) station which began commercial operation in September 2012, with a gross consented capacity of about 2,199 megawatts electric (MWe), replacing the previous oil-fired power station which operated for almost 30 years and was decommissioned in 1999.

A supporting statement says, subject to confirmation, it is considered to comprise permitted development, the scheme “a standalone plant, with its own fuel supply, capable of starting up, operating and shutting down independently from the power station”.

It adds: “It is required only in an emergency to maintain plant status and keep the power station operationally ‘ready’ in the event of a total or partial shutdown of the National Grid system. It is not required for the normal operation of the power station and does not extend its capacity, which remains as already consented, therefore it is not considered a change or extension.”

On need, it says it is mandatory that all electricity generators of over a megawatt have to adopt a new minimum standard of asset resilience; power stations “must be capable of restoring demand on the National Grid electricity transmission system in the event of a total or partial shutdown of the National Grid system”.

“The Power Station does not currently meet this new asset resilience standard, therefore new back-up power, control philosophy and on-site services that support site critical systems enabling the power station to remain ready to operate must be implemented.

“RWE is required to install a new enhanced emergency site auxiliary solution (diesel generators and diesel storage tanks) at the power station for resilience against the failure of the interconnected electricity distribution network into which it is normally connected in order to satisfy the Grid Code requirements by the mandated implementation deadline of December 31, 2026.

“RWE will make operational and fuelling provision, within its new resilience design at Pembroke power station of up to 120 hours, in order to provide capability to a slightly enhanced standard known to be valued by the National Energy System Operator (‘NESO’) in certain emergency network scenarios.”

It says construction is hoped to start in July 2026, lasting approximately nine to 12 months, the main part across the summer months.

The call will be considered by county planners at a later date.

 

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Business

Pembrokeshire St Brides Castle biomass and solar scheme

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PLANS for a green energy scheme at a Pembrokeshire former country house which is now holiday apartments have been given the go-ahead.

In an application to Pembrokeshire Coast National Park, HPB Ltd, through agent Acanthus Holden Architects, sought permission for a biomass boiler plant and installation of 16 rows of solar panels to the south of the tennis courts, St Brides Castle, St Brides, along with the removal of two tennis courts, two polytunnels, two sheds and relocation of a container.

Marloes and St Brides Community Council: Supporting

An officer report recommending approval said: “St Brides Castle. Listed Grade II* is a former country house (now holiday apartments) just south-west of the small settlement of St Brides.

“The house and its listed ancillary buildings stand prominently within a large grade-II-registered park and garden. The development site lies immediately south of the registered asset, outside of its boundary.”

It added: “Although in a sensitive location, the proposed scheme is well-screened, utilising an existing hedged enclosure. The proposed panels do not protrude over the hedge line, the proposed extra planting to the south and west providing further screening. The proposed building, also well-screened, is of traditional design, proportions and materials.”

The application was conditionally approved by park planners.

 

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Business

Welsh business confidence rises as firms buck UK trend

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Wales records strongest year-on-year growth of any UK nation or region, according to Lloyds Business Barometer

WELSH business confidence rose in April as firms reported growing optimism about the wider UK economy, new figures show.

The latest Business Barometer from Lloyds found that confidence among businesses in Wales rose by eight points to 38% during the month.

That was despite overall UK business confidence falling by 11 points to 44% in April.

The survey found Welsh firms’ confidence in their own trading prospects remained unchanged at 46%, while optimism about the wider economy climbed 16 points to 30%.

When combined, those figures gave Wales a headline confidence reading of 38%, up from 30% in March.

Wales also recorded the largest year-on-year confidence growth of any UK nation or region and was the only area to report both year-on-year and month-on-month growth.

A net balance of 34% of businesses in Wales said they expected to increase staff numbers over the next year, up nine points on the previous month.

Looking ahead, Welsh firms identified investment in their teams as the main target area for growth, with 48% citing training and staff development.

Other priorities included introducing new technology, such as AI or automation, at 42%, and evolving products or services at 40%.

The Business Barometer, which surveys 1,200 businesses each month, has been running since 2002 and is used as an early indicator of UK economic trends.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year.

“UK businesses are resilient and adept at deploying strategies to defend growth in uncertain conditions. Over the past month, we’ve seen them opt for flexibility wherever possible.

“They’re building contingency into their short and medium-term plans, rather than expecting a rapid return to normal. Protecting margins has become more important.

“That means tougher cost scrutiny and a greater focus on balancing growth with profitability.

“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long-term value.”

Nathan Morgan, area director for Wales at Lloyds, said: “Wales is bucking the UK-wide trend when it comes to business confidence, increasing during April against the national trend.

“This confidence is the result of Welsh firms’ ongoing focus on investment to protect their position against future disruption.

“At Lloyds, we’ll continue to nurture this recent momentum of growth by working with businesses across the nation to equip them with the financial tools they need.”

Across the UK, firms’ confidence in their own trading outlook fell six points to 54%, while optimism in the wider economy dropped 17 points to 33%.

The East Midlands was the most confident UK nation or region in April at 53%, followed by London at 51% and the West Midlands at 49%.

 

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