
Business group Logistics UK has called on the government to include the logistics industry in its recently announced electricity discount scheme, arguing that affordable energy is essential for the sector’s transition to zero-emission transport. The appeal follows the government’s decision to increase discounts on electricity costs for certain energy-intensive industries.
Michelle Gardner, Deputy Director of Policy at Logistics UK, said,
“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. 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 among the G7, our industry will struggle to remain competitive while still delivering everything that industry and consumers rely on every day. Increasing use of cost-effective electricity will be vital if logistics businesses are to decarbonise, so we need support from the government to keep our industry driving the growth the country needs and urge it to extend the electricity discounts across our sector.”
Gardner’s comments come as the logistics industry faces rising operational costs and mounting pressure to reduce carbon emissions. As many operators prepare to transition to electric fleets, electricity prices have become a significant concern. Logistics UK argues that, without government intervention, the high cost of power could slow progress towards cleaner transport solutions.
As the shift to electric vehicles accelerates, the sector is expected to become one of the country’s largest consumers of electricity, making cost relief vital for maintaining competitiveness and supporting the government’s net-zero ambitions.