UK industry cuts investment due to high energy costs (CBI and Energy UK findings)
Posted by: electime 25th February 2026
“High energy costs are placing a stranglehold on UK industry, such as manufacturing and data centres, hindering its ability to invest in electrification and digital technologies that are essential for modern, competitive production. Lowering the cost of power must be a priority if businesses are to switch from fossil fuels, adopt automation, and scale digital solutions that improve efficiency and productivity. Whilst we welcome the Government’s commitment to lower energy bills for manufacturers through schemes like BICS, industry needs a long-term plan and solutions – not short-term fixes.
“Progress to electrification is also being held back by an ageing grid infrastructure that is no longer fit for purpose. Carefully managed grid upgrades will bolster resilience, secure energy independence and bring down the cost of electricity to more affordable levels.
“Finally, alongside electrification, digitalisation is key to boosting competitiveness and innovation. Adopting readily available digital tools to improve efficiency and reduce costs is key – especially at a time where energy costs are at an all-time high. After all, the cheapest energy is the energy you don’t use. By embracing electrification, automation, and digitalisation, the UK can revitalise its industry, create jobs, and drive sustainable economic growth.”
David Hall, President, Schneider Electric UK&I
