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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

New showroom for car dealership approved by county planners

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PLANS for a new showroom for a Pembrokeshire car dealership which has recently acquired a new Isuzu vehicle franchise, have been given the go-ahead.

In an application to Pembrokeshire County Council, Gareth Hughes Motors of 25 Burton Road, Sardis, through agent Hayston Developments & Planning Ltd, sought permission to replace a temporary canopy with fixed permanent mini-showroom.

A supporting statement said: “Gareth Hughes Motors is a family run enterprise, established in 1982. In order for the business to respond to the latest technological advancements, especially those related to the transition to hybrid and electric vehicles, additional space and different resources will be required.

“Approval of this application will assist in the delivery of these required resources, associated staff training and recruitment for the servicing of electric vehicles will also lead to the retention and provision of skilled employment.”

It says the extension will be designed to allow sufficient space to display Isuzu vehicles, an additional motor franchise recently acquired by the dealership, with no changes proposed to the existing access from the C3007 as the mini-showroom would take place to the rear of the site and replace an existing canopy structure.

It added: “The environmental impacts from the proposal are minimal as the replacement structure takes place on a concreted/bitumac surface which is currently used for the parking of cars. In addition, the design and use of materials complements that of the current showroom and repair shop and by the addition of a bird and bat box on the south-east of the proposed extension.

“The proposed new mini-showroom will accommodate a maximum of two vehicles and would take place to the rear/side of the site and would be constructed in materials which complement those of the existing showroom and service bays.

“Although Gareth Hughes Motors is located within a group of residential properties it is considered that there will be no significant negative impacts on those neighbouring properties because of their distance from the application site, the orientation of the buildings.

“The securing of an additional franchise at this Sardis site will both help secure the future of the existing staff and create opportunities for additional employment in the motor trade.”

The application was conditionally approved by county planners.

 

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The Cheesecake Guy Ltd plans withdrawn following community council objections

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PLANS for what could have been the third store in the country for Welsh cheesecake business The Cheesecake Guy Ltd at Saundersfoot’s Coal Building interpretation centre have been withdrawn.

In an application to Pembrokeshire Coast National Park, Craig Taylor of Merthyr Tydfil-based The Cheesecake Guy Ltd sought a change of use of part of Saundersfoot’s Cambrian Terrace Coal Building interpretation centre to create a small retail unit.

On its website, The Cheesecake Guy says of its business and products: “Established in 2019, The Cheesecake Guy is all about delivering indulgent, handcrafted cheesecake desserts with a twist. While we offer a range of sweet treats, our specialty — and customer favourite — is the signature cheesecake jar.

“Made with quality ingredients and packed with rich, creamy layers, our jars are the perfect dessert for any occasion. Whether you’re treating yourself or sharing with others, The Cheesecake Guy brings a spoonful of happiness to every bite.”

While no supporting statement was published for the Saundersfoot proposal, the application said the scheme, if approved, would employ two full-time members of staff, operating 10am-6pm Mon-Sat, and 10-5 on Sundays and bank holidays.

Of the scheme itself it said it would involve “retail sales of pre-prepared desserts and merchandise,” adding there will be “no on-site manufacturing or heavy processing,” with “equipment limited to display fridges and freezers”.

If approved, the Saundersfoot site would have been the third outlet for The Cheesecake Guy, with sites in Merthyr, and, more recently, Newport Market.

For its Newport site, The Cheesecake Guy says: “We specialise in creating a wide variety of cheesecake desserts that cater to all tastes. Our menu features popular favourites that have won the hearts of many, alongside exciting new creations designed to keep your taste buds satisfied.

“Whether you’re a classic cheesecake lover or an adventurous foodie, we promise a cheesecake experience like no other. Each cheesecake is made with the utmost care, ensuring a rich, creamy texture and a burst of flavour in every slice (or jar!).”

Since the application was submitted, Saundersfoot Community Council objected “on the basis that the harbour is diluting the original intention of this area, which was designed to be an educational section of the development”.

The application is now, as of June 19, marked as withdrawn.

 

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Amended Fishguard children’s home scheme approved

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AN AMENDED scheme for a children’s care home on the edge of Fishguard has been approved after a previous call was refused.

In an application to Pembrokeshire County Council, Martin Leahy of Ty Caredig Ltd sought a certificate of lawfulness permission for the use of a dwellinghouse to a residential care home for up to two children at Bryn Delyn, Y Fraich, Fishguard.

Last November, a similar call to allow Bryn Delyn to be used as a children’s home, which raised fears from local objectors the scheme was being ‘rubber stamped’ by the council, was refused.

In that application to the council, Cardiff-based Ty Caredig Ltd sought permission for a Certificate of Lawfulness on the basis the use was not materially different from the property’s existing lawful use.

Residents had accused the council of “pushing through a highly controversial children’s home application behind closed doors”.

A supporting statement for that scheme, with many redacted parts, said the four-bed property had a lawful use as a dwelling house; saying the use as a care home did not require planning permission through a change of use.

However, planners said the use of the dwelling as a care home “would represent a material change of use requiring the benefit of planning permission”.

Since then, amendment to the scheme, for a lawful change of use was submitted, a supporting statement saying Ty Caredig Ltd operates homes throughout Wales that provide specialist care for children, the latest scheme “seeks formal confirmation that the proposed use of Bryn Delyn as a children’s care home for up to two children (plus care staff) would not require planning permission”.

Fishguard Town Council objected, on the grounds of highway safety and parking issues.

It also raised points of “apparent discrepancies between the planning application and the information available on the website,” but stressed it did support provision of suitable accommodation for vulnerable young people and children “with the correct infrastructure in place”.

Local county councillor Cllr Par Davies has said the scheme has her “full support,” as did the certificate call, adding: “Rumours abound regarding this application with objections concerning the usage of the property as a care home for young people. The application states that only two young people would be cared for in the property.

“This type of property is needed as we often talk as councillors for the need for Pembrokeshire children in care to remain in Pembrokeshire instead of the alternative of moving them to other areas in the country and this application fulfils that need.”

The application was approved by planners, the approval stating “Based on the information submitted and on the balance of probability it is considered that the use of the property as a residential care home for up to two children would not result in a material change of use from the lawful use of the property as a dwellinghouse and as a result a certificate of lawfulness for a proposed use should be granted.”

 

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