Under the Supercharger and British Industrial Competitiveness Scheme, around 500 energy-intensive businesses across sectors such as steel, cement, glass, chemicals and paper will benefit from enhanced discounts on electricity network charges.
From April 2026, participating companies will collectively save up to £420 million per year on their electricity bills, according to Business Secretary Peter Kyle.
The increased support, which forms part of the Government’s Modern Industrial Strategy, seeks to help British manufacturers remain competitive in the face of lower energy costs overseas.
Firms across Scotland and Wales, including Tata Steel at Port Talbot, are among those expected to benefit.
Business and Trade Secretary Peter Kyle said the policy “delivers a level playing field” for UK manufacturers, describing it as “practical, targeted support that secures jobs, attracts investment and drives our economy forward.”
Impacts for recycled paper
The paper sector is among those to gain from the Supercharger scheme, following sustained lobbying from the Confederation of Paper Industries (CPI) and its members.
UK paper mills enrolled in the scheme will see the rebate on electricity network costs rise from 60% to 90%, bringing them closer to parity with competitors in Germany, where industrial energy costs have long been significantly lower.
The Government’s acknowledgement that high UK electricity prices undermine the competitiveness of energy-intensive industries has been welcomed by the CPI, which has argued that such costs have placed domestic manufacturers at a disadvantage.
Alex Veitch, Chief Executive Officer of the CPI, commented: “This policy decision is a welcome step in the right direction, following detailed discussions with government to make the case for support.
“Looking ahead, our members need government to set us on a course toward internationally competitive energy prices to keep and grow jobs and manufacturing in the UK.
“However, while the Supercharger scheme supports parts of the paper sector, we still see urgency in addressing energy costs faced by all UK industry.”
Paper prices in October 2025
The announcement comes amid a period of slight decline for the paper market.
Prices remained relatively stable in early October, but have fallen in recent weeks across all grades, with industry contacts expecting further decreases in November.
Earlier this month, China tightened its dry pulp import rules, disrupting supply chains and dampening international demand.
At the same time, oversupply in the US has led American mills to slash prices in a bid to stimulate exports to India and Europe, intensifying downward pressure.
While some UK operators have reported improved generation levels this month – slightly mitigating external pressures – the overall outlook remains subdued.
Find out more about paper prices in our October market report.
Subscribe for free