The UK’s controlled environment horticulture sector is sounding the alarm over a devastating 94% increase in electricity network charges set to take effect in April 2026. Without immediate government cooperation, the financial shock could trigger widespread business failures and drive-up food prices for millions of consumers.
Part of the problem is the sector’s exclusion from the Energy Intensive Industries (EII) exemption scheme – a policy oversight rooted in outdated Standard Industrial Classification (SIC) codes. Despite operating with energy demands comparable to compensated manufacturing sectors, protected horticulture remains ineligible for this support.
Inclusion of protected horticulture in the EII scheme would offer considerable relief, but even with a 90% discount, ongoing increases in energy costs across the board remains financially difficult for many businesses—threatening business viability and likely driving food price inflation at a time when affordability is critical.
UK energy costs are the highest in Europe and further increases risk making British horticulture uncompetitive compared to growers in countries like Holland and Belgium. The EII exemption was introduced to help offset this disadvantage, as UK industrial electricity prices remain significantly higher – £56/MWh versus £34–£38/MWh in France, Germany, and the Netherlands.
For some large individual glasshouse businesses, the planned standing charge hike of 94% could add almost £1M to operating costs. Growers – who supply essential year-round crops like tomatoes, cucumbers, and peppers – operate on razor-thin margins and cannot absorb such a dramatic increase in costs.
“This is not just a business challenge; it’s an existential crisis,” said Simon Conway, Chair of the British Tomato Growers Association (BTGA). “After weathering the recent energy crisis, this non-commodity network charge increase, threatens the viability of glasshouse growers, unless they can pass the costs downstream, which in turn could drive further food inflation in 2026”
