UK boosts supercharger scheme to cut electricity bills for paper mills, green packaging

UK – The UK government has ramped up its Supercharger scheme, delivering direct relief to energy-heavy sectors like papermaking amid soaring power prices. 

According to a Department for Business and Trade announcement, the rebate on electricity network charges for eligible installations will jump from 60% to 90%, effective immediately for qualifying firms. 

This adjustment targets the gap between UK industrial energy rates and those in nations like Germany, where mills pay far less to operate.

The move comes after months of advocacy from industry groups, including the Confederation of Paper Industries (CPI), which supplied data showing how high electricity costs, often double those abroad, threaten domestic production. 

UK paper mills, key players in sustainable packaging supply chains, stand to save significantly.

A report by government analysts estimates the enhanced network compensation alone could deliver US$390 million to US$520 million in total savings across 500 energy-intensive businesses this year, with papermaking among the top beneficiaries. 

These funds help offset charges tied to grid maintenance and renewable policy levies, freeing up capital for operations.

Alex Veitch, CEO of the CPI, called the decision a solid gain. In a statement, he said, “This policy decision is a welcome step in the right direction, following detailed discussions with government to make the case for support.” 

He added that members now look to policymakers for broader fixes on power pricing to sustain jobs and output in the face of global rivals.

The Supercharger, launched in April 2024 as part of the British Industrial Competitiveness package, already exempts firms from costs like the Renewables Obligation and Feed-in Tariffs.

This latest uplift builds on that foundation, responding to a July 2025 consultation where stakeholders pushed for the 30% increase to shield against import surges from low-energy-cost countries. 

For the paper sector, which recycles over 80% of its raw materials for eco-friendly boxes and wraps, lower bills mean more investment in low-carbon tech. 

One Midlands mill operator noted privately that the change could trim annual energy outlays by up to US$1.2 million, allowing shifts to biomass fuels without price hikes on recycled products.

While the scheme aids core energy users, gaps remain for smaller operations. 

Veitch pointed out the need for wider reforms, saying members require a path to match international rates fully to expand manufacturing. 

The government has signaled more consultations by year-end on levy cuts, potentially extending relief to 7,000 additional firms in 2026. 

This comes as UK industrial electricity averaged US$0.18 per kWh last quarter, 30% above the EU norm, driving calls for grid upgrades.

In related developments, a fresh October 2025 review by the Department for Energy Security and Net Zero proposes indexing renewable levies to inflation, which could shave another US$50 million off sector bills next year. 

Packaging leaders see these steps as vital to scaling sustainable alternatives like molded pulp trays, which rely on stable mill economics to compete with plastic imports. 

With exports of UK recycled paper up 12% in 2025, the timing aligns with rising demand for green solutions in e-commerce and food sectors.

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