Glasshouse growers to be hit by massive hike in electric fees

Vegetable growers are urgently seeking relief from higher electricity standing charges, set to take effect from 1 April 2026.

Horticultural businesses are already facing substantial costs due to conflict in the Middle East, which triggered a sharp surge in gas prices, with wholesale rates more than doubling in recent months.

The British Tomato Growers’ Association (BTGA), along with the Cucumber and Pepper Growers’ Association (CPGA), has written to the Department for Business and Trade (DBT) and Defra warning that the combination of the increase in standing charges and the abrupt gas‑price surge represents an “immediate and unsustainable financial burden” for growers.

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The associations say growers are facing millions of pounds in unavoidable additional costs, which is putting the sector under extreme pressure.

They warn that energy often accounts for up to 30% of total production costs for growers, and these increases could lead to cuts in domestic production.

BTGA chairman Simon Conway and CPGA chairman Joe Shepherdson said: “Without rapid intervention, growers will be forced to scale back output or stop production entirely, increasing import dependence, undermining food security and putting renewed pressure on food inflation.”

Exemptions 

Growers are calling on government to include the sector in the Energy Intensive Industries scheme, which provides an exemption for high energy use industries.

Farmers Weekly contacted Defra, DBT, and the Department for Energy Security and Net Zero (DESNZ) for comment.

A government spokesman said: “Fruit and vegetable growers have an important role to play in our mission to drive economic growth, and horticulture will be supported as a priority growth sector by our new Farming and Food Partnership board.

“Our investment in energy infrastructure will more than pay for itself by getting more renewables on the grid, ending our reliance on volatile fossil fuel markets, and bringing down bills for good.”

However, It was not made clear whether the government had assessed the impact on UK food production of the increase in standing charges, and whether it was considering support for affected growers.

Supercharger scheme

Exemptions are currently limited to specific businesses within energy intensive industries through the British Industry Supercharger scheme, covering sectors such as steel, metals, chemicals, cement, glass and paper.

The government has committed to conducting a refresh of the exemptions in 2026, potentially reassessing which sectors will be eligible to access the supercharger scheme.

NFU Horticulture and Potatoes Board chairman Martin Emmett said: “Despite repeated evidence and warnings given, government has not committed to supporting energy intensive horticulture, meaning growers will face the full impact, risking a repeat of the 2022-23 production cuts which in part resulted in empty supermarket shelves.

“Government has reaffirmed its intention to work with industry on a horticulture growth plan at the first Farming and Food Partnership Board meeting, yet this policy will actively undermine growth.

“We appreciate Defra working with us on mitigations, but time is running out. Government must act now.”