Greenhouse Growers Warn Of Heavy Cost Pressures Under New Electricity Charging Reforms

Major changes to the UK’s electricity transmission charging system are set to come into effect in April 2026, and greenhouse growers are warning that the shift could add significant pressure to an already-strained sector.

Image: Now Then Energy

National Grid’s roadmap for an upgraded transmission network will introduce higher fixed monthly charges for many commercial users, including controlled-environment horticulture. These charges will be based on voltage level and agreed supply capacity rather than actual usage — a structure that could push many greenhouses into more expensive charging bands.

Ben Ablewhite of Now Then Energy writes in a recent article for Fresh Plaza: “All greenhouses will see increases in TNUoS fixed charges from April, but the magnitude of the changes varies dramatically.” He explains that seasonality — a defining feature of horticultural energy use — is not factored in. “Seasonality of demand is not currently taken into account in the levying of charges,” he notes.

There are mounting concerns about the longer-term impact on competitiveness. National Grid forecasts indicate that the new transmission charges could double between 2026 and 2030. For growers using energy-intensive systems, particularly those relying on supplementary lighting, rising costs could place them at a serious disadvantage against imported produce.

Ablewhite warns: “If greenhouses are to survive – and especially lit production – costs have to be passed on to the consumer via supermarkets… it’s essential that greenhouses are offered access to the same energy cost relief schemes as other energy-intensive industries that the UK Government deems to be at a potential competitive disadvantage.”

Relief Schemes Out Of Reach

A central frustration for growers is that the sector does not currently qualify for the Energy Intensive Industries (EII) scheme. Without EII eligibility, greenhouse operators are also blocked from the Network Charging Compensation (NCC) scheme, which is designed to soften the impact of high transmission costs.

Ablewhite outlines several routes that could bring the sector into the fold. These include creating a dedicated SIC code for protected horticulture, broadening EII eligibility to agriculture — a move that could benefit many lit-production sites — or using the existing Climate Change Agreements as a mechanism to demonstrate the sector’s energy profile.

With growers increasingly investing in electrification technologies such as heat-pumps and LED lighting, the availability of relief schemes is becoming even more critical. Without support, the financial justification for further decarbonisation becomes far more challenging.

What Growers Can Do Now

While the sector cannot avoid the structural changes, Now Then Energy advises growers to take proactive steps. Reviewing agreed grid capacity is one of the most effective. Under the new banding system, having more capacity than needed may push a site into a higher fixed-charge category.

As Ablewhite puts it: “Having plenty of grid capacity was seen as an asset… but it’s an expensive asset nowadays.”

He stresses the importance of collective advocacy: “It’s important that we get behind the likes of the Tomato Growers Association and National Farmers’ Union, talking to Government to push for access to schemes that are already making a big difference to other industries.”

Source: Fresh Plaza