You asked, we listened: Supporting members on energy costs through our partnership with Envantage
04/03/2026
Energy costs remain one of the most pressing challenges facing UK textile and garment manufacturers and processors. Rising wholesale prices, increasing network charges and growing policy complexity are all placing sustained pressure on margins across the supply chain. Oil and UK Gas prices are also currently surging amid the escalating Middle East conflict.
UKFT members told us they want clearer routes to cost reduction, better understanding of exemptions and compensation, and practical support that works for businesses of all sizes. In response, we have strengthened our partnership with *Envantage to provide joined-up support on energy purchasing, compliance and cost mitigation.
Understanding rising network costs
From April 2026, network costs are increasing, adding another layer of pressure to electricity bills regardless of contract size. Many businesses are unaware of how these charges are calculated or how significantly they can affect total energy spend.
Through our work with Envantage, we are helping members to better understand network charges, assess exposure and identify potential mitigation routes. This includes reviewing eligibility for exemptions and ensuring that assessments are carried out correctly and regularly. To understand and prepare for these upcoming changes, members can sign up to our informative webinar on 18 March 2026 (details here).
Exemptions and compensation: are you missing out?
A key focus of our partnership is helping textile businesses access exemptions and compensation schemes that are often under-utilised within the sector.
Many companies miss out on Energy Intensive Industry (EII) exemption because assessments are not completed accurately or reviewed often enough. Others are simply unaware that Emissions Trading Schemes (ETS) and Carbon Price Support (CPS) compensation may be available at all. Envantages and UKFT’s assessments highlight where structured support is underutilised.
For example:
Spinners are often well placed to access ETS and CPS compensation, yet many eligible businesses are not claiming.
The scope of the new British Industrial Competitiveness scheme (BICs) is limited for most textiles manufacturers and processors, however there may be opportunities for businesses supplying specialist textile applications such as automotive restraint systems or aircraft interiors.
Some manufacturers assume exemptions do not apply to them without having their position properly assessed.
UKFT’s aim is to help members to ask the right questions, understand eligibility and engage with specialists who can support claims and ongoing compliance.
Collaborative energy purchasing for textile businesses
Following strong interest from members, we are working with Envantage to make collaborative energy purchasing more accessible across the sector. This approach allows participating businesses to aggregate demand, improve purchasing power and secure more competitive energy contracts.
While this model is particularly effective for small and medium-sized users, we are clear that energy strategy matters for everyone. Larger energy users face a different risk profile, but the need for informed procurement and ongoing contract management is just as critical.
If your business is interested in finding out more about sector collaborative energy purchasing please get in touch by emailing info@ukft.org
Ongoing support for CCA holders
UKFT has run the CCA scheme for the textile sector for over 20 years. For members holding Climate Change Agreements Envantage can provide quarterly target tracking status reports, supported by monthly data assessments. This gives businesses clear visibility of:
- What they are saving through their CCA
- Whether they are on track to pass or fail targets
- Potential carbon costs that may arise
This allows CCA holders to plan ahead, manage risk and accrue where necessary, rather than reacting at the end of a target period. Envantage already provides this type of service support to other members associations and trade bodies such as the National Microelectronics Institute, Society of Motor Manufacturers & Traders, and the Aluminium Federation, which champion it as a valuable tool for informed decision-making and risk mitigation.
Recently, Envantage have noticed a sharp rise in the frequency of audits on CCAs by the Environment Agency, especially relating to eligibility This means that companies’ Evidence Packs are being checked closely, so it’s a good time to make sure thet these are up to date.
What this means for members
You told us energy costs are a major concern. We have listened and taken action by strengthening a partnership that delivers practical, sector-specific support, not generic advice.
Whether you are looking at collaborative purchasing, navigating rising network charges, reviewing exemption eligibility or managing CCA obligations, we want members to know that help is available and that early engagement matters.
If you are unsure whether your business is eligible for exemptions or compensation, or if you have not reviewed your position recently, now is the right time to start the conversation.
UKFT’s partnership with Envantage is about ensuring businesses are informed, prepared and supported in a challenging energy landscape.
For an introduction to Envantage, UKFT members can email info@ukft.org.
Find out more about Envantage:
About UKFT Associate Partners
UKFT works with broad range of trusted suppliers to the fashion and textile industry as Associate Partners. These organisations are specialists in their areas of expertise and offer a range of exclusive benefits and services to UKFT members. See more about referrals here.