Key Takeaways
- UKUAT has raised concerns over a planned 94% increase in electricity network standing charges from April 2026.
- The changes could significantly impact glasshouses and vertical farms across the UK.
- The sector remains excluded from the Energy Intensive Industries (EII) exemption scheme despite high energy demand.
- Higher electricity costs risk reducing domestic food production and increasing consumer prices.
- Industry bodies are calling for urgent policy updates to include CEA and vertical farming in energy relief schemes.
UKUAT Highlights Rising Energy Costs Across Controlled Environment Agriculture
UK Urban AgriTech (UKUAT) has issued a warning over the impact of a planned 94% increase in electricity network standing charges scheduled to take effect in April 2026. According to the organization, the proposed changes pose a significant financial risk to the UK’s controlled environment agriculture (CEA) sector, including both protected horticulture and vertical farming operations.
The revised charges are calculated based on grid connection capacity rather than actual electricity consumption. This structure means that businesses with high-capacity connections—common in glasshouses and vertical farms—could face substantial additional costs regardless of usage levels.
UKUAT Flags Risks for Vertical Farms and Glasshouse Operators
Standing Charges Based on Capacity, Not Consumption
UKUAT notes that vertical farms are particularly exposed due to their reliance on high-capacity electrical infrastructure for lighting, climate control, and automation. Larger operators could face very large cost increases, while smaller vertical farms, often operating with limited margins, may struggle to remain viable.
