Logistics must be included as one of the sectors receiving a discount in electricity costs after the government announced hundreds of firms would get help slashing their bills, Logistics UK has urged.
The department for business and trade (DBT) said 500 of the country’s most energy-intensive businesses would save up to £420m a year on the electricity bills from next year.
Business secretary Peter Kyle said it would increase the discount on electricity network charges from 60% to 90% for businesses in sectors such as steel, cement, glass and chemicals.
It comes on top of the government’s British industrial competitiveness scheme announced in the modern industrial strategy, which will cut energy costs by 25% for over 7,000 businesses from 2027 in sectors like aerospace, automotive and chemicals.
The business secretary said: “British industry deserves a level playing field – and this government is delivering it.
“We’ve heard businesses loud and clear, and this landmark support will help them stay competitive on the global stage so they can invest and grow here in the UK.”
But Logistics UK said the industry needed the same help as it attempts to reach net zero: “If the government is serious about its commitment to decarbonisation, it must make the cost of electricity more affordable to ensure logistics operators can invest in the switch to electric vehicles,” said Michelle Gardner, deputy director of policy at Logistics UK.
“Our sector is set to become a future energy intensive industry due to the shift to electric fleets, so logistics should be granted the same dispensations as the other sectors named today.
“Fuel is the single biggest cost paid by our sector, but while the UK has the highest industrial electricity prices in the G7, our industry will find it hard to stay competitive while still delivering everything that industry and consumers rely on every day.”
She added: “Increasing use of cost-effective electricity will be vital if logistics businesses are to decarbonise, so we need support from government to keep our industry driving the growth the country needs and urge it to extend the electricity discounts across our sector.”
