Major Welsh employers among those set for relief
Some of South West Wales’ biggest employers — including Tata Steel in Port Talbot, Amcor Flexibles in Swansea, Brecon Carreg in Llandeilo, Huntsman in Bynea, Llanelli, and WEPA UK in Maesteg — are set to benefit from a UK Government scheme to cut electricity costs for energy‑intensive industries.
From April 2026, the discount on electricity network charges will rise from 60% to 90% for around 500 businesses across the UK. Officials say the move could save industry up to £420 million a year and bring UK energy prices closer to those faced by European competitors.
What it means for South West Wales
In Neath Port Talbot, Tata Steel is expected to be one of the biggest beneficiaries. The company is currently building a new electric arc furnace to modernise its operations and reduce carbon emissions, with around 5,000 jobs tied to the site.
Other local firms include Envases UK in Baglan, which manufactures aluminium packaging, and Energybuild in Glynneath, which operates the Aberpergwm Colliery producing high‑grade anthracite.
In Swansea, Amcor Flexibles produces packaging products at its Enterprise Park site. In Carmarthenshire, Brecon Carreg, which bottled more than 50 million litres of water last year, and Huntsman, a major chemical manufacturer in Bynea, are also named. In Bridgend County, tissue and hygiene paper producer WEPA UK in Maesteg is among the firms expected to benefit.
Ministers say move will “level the playing field”
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 described the announcement as backing “key Welsh industries to drive economic growth, boost investment and create well‑paid jobs.”
Welsh Government Cabinet Secretary for Energy Rebecca Evans MS added:
“This is welcome news for Welsh industries, and it’s good news for our local economies too. Cheaper energy means stronger investment, more opportunities, and better jobs.”
Critics warn SMEs are left out
While the scheme has been welcomed by large manufacturers, business groups have voiced frustration that the discounts will not be backdated to cover the period since April 2024.
The Federation of Small Businesses has also warned that the scheme “does nothing for the thousands of smaller firms still struggling with high energy bills,” arguing that support is too narrowly focused on heavy industry.
Energy analysts have pointed out that UK industrial electricity prices remain among the highest in the developed world. Dr Andrew Montford of Net Zero Watch said the measures “still leave British firms at a disadvantage compared to European competitors” and that “the government has ignored the plight of smaller businesses who are equally exposed to high costs.”
What happens next
The new rates will apply from April 2026. The government has also announced plans for a Connections Accelerator Service by the end of 2025, which it says will make it easier for major projects to connect to the electricity grid.
Officials argue the measures will help safeguard jobs in Wales’ foundational industries and attract new investment, but critics say the benefits will be unevenly spread.
