Essential Electrification: Proposals for Industry
15.08.2026
High industrial electricity costs are holding back manufacturers that could otherwise electrify, invest and grow in the UK.
Essential Electrification: Proposals for Industry sets out the barriers facing manufacturers and the action Government can take to unlock industrial electrification.
Around 80% of UK manufacturers — approximately 104,000 businesses — could electrify, but high electricity costs, grid constraints and skills shortages are making the business case increasingly difficult.
What's at stake?
The UK’s electricity “spark gap” is around 3.7–4.3 times higher than gas, despite electric technologies often being significantly more efficient.
A Targeted Electrification Discount Scheme could reduce electricity costs by up to 80% for some industrial sites, helping businesses invest in cleaner production while remaining competitive.
Three priorities for Government
- Introduce a Targeted Electrification Discount Scheme to reduce the cost of switching from gas and oil to electric technologies.
- Reform electricity pricing to provide manufacturers with greater certainty and reduce the cost burden on industry.
- Deliver a long-term Industrial Electrification Strategy to give businesses a clear direction for investment.
The report also sets out recommendations on grid connections, skills, supply chains and flexibility.
Read the full report to explore the evidence and recommendations for making industrial electrification work.