The UK’s manufacturing industry continues to form a large and important part of the UK economy. With innovative manufacturing processes, ongoing research and development, and many thousands of people employed by the sector, it is easy to see why British manufacturing is of global importance; however, many companies operating within the UK’s manufacturing sector are struggling with high electricity bills, costs they feel are comparatively much higher than the bills their European counterparts are paying.
Energy-intensive processes
Some manufacturing companies, particularly those that produce metals such as steel and aluminium, use far higher amounts of electricity. Metal production and metal plating affect products that thousands of us use each day, such as cars and electrical components. Electroless nickel plating offered by specialist metal finishers such as https://www.swmf.co.uk/surface-coatings/electroless-nickel-plating/ is one such example.
The government is therefore proposing a pot of funding aimed at these businesses in particular to help them cover the cost of the ever-rising energy bills that currently take a considerable chunk of their profits.
The specifics of funding
This funding drive will see the Network Compensation Charge, also known as the NCC, raised to 90% from the 60% it is now. This is essentially a discount on the fees charged to connect to the National Grid and will be offered to manufacturing companies that meet the criteria.
What this means in real terms is that manufacturing companies in this field will benefit from a real-time discount of just over £6 per hour in their electrical costs.
Aside from the cost savings, there are several other benefits to this funding. It is hoped that freeing up cashflow will allow companies to recruit more skilled workers to the field; what’s more, arguably one of the most important things to consider is that this funding boost will support companies in making the essential transition to greener energy uses within the manufacturing industry as they play their significant role in reducing their carbon footprint to support the government’s climate change agenda.
