Every business wants to reduce energy spend and improve efficiency, and Voltage Optimisation can be a useful starting place. UK manufacturers are negotiating global energy price volatility alongside spiralling bills. Looking to the longer-term, for British manufacturing to remain competitive, we need to push ahead with electrification: the future of manufacturing is digital.
In this blog, we look at the UK’s industrial energy landscape and which businesses benefit best from Voltage Optimisation for immediate benefit and longer-term gains.
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The UK energy pricing context: why are our energy bills so high?
In February, the British Chamber of Commerce published Powering Growth: Resetting Energy Costs for Businesses, setting out the problems faced by UK industry alongside policy recommendations for government to address this pressing issue – where over a quarter of businesses are finding it difficult to pay their energy bills, with 52% facing pressure to raise prices due to utilities’ costs in Q4 2025.[1]
Under the UK’s marginal pricing model, in essence, electricity prices are set by the most expensive power generation needed to meet demand at the time. Which means we have the highest industrial electricity costs across the International Energy Association. 2023 data indicates UK industrial electricity price at 25.85 pence per kWh, compared to France at 17.84 pence, Germany at 17.71 pence, Canada at 8.69 pence, and the US at 6.48 pence per kWh.[2] And, despite the growth in renewables as a percentage of UK energy generation, “gas sets the wholesale price more than 95% of the time”.[3]
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The impact of energy costs – and government support – on business confidence
Despite the UK’s structural disadvantage compared to most G7 competitors, “The Shape of British Industry” indicates that 65% of UK businesses say they are planning major investment in AI and digitisation, to help retain an internationally-competitive edge.[4] While skills shortages are the most significant barrier to growth, energy pricing volatility and high energy costs are a significant deterrent to investment in, and adoption of, electricity-based technologies. And this reflects the overall sentiment of British industry leaders: it is the ingenuity of UK businesses that make Britain competitive, despite – and not because of – the business environment or government support for manufacturing.
MAKE UK’s first Manufacturing Outlook report of the year, covering Q1 2026, shows a slow Q4 for 2025, though one of “stagnation rather than outright recession”, but it does forecast growth recovery over the coming year, with projected annual GDP growth of 1.3% by 2027.[5] That said, there’s no level playing field across manufacturing sub-sectors: evidence suggests that public policy drives business confidence. There is a clear divide, where energy-intensive sectors,
“continue to face pressure from cost bases, regulatory requirements, and subdued business confidence. The chemicals sector, for example, has experienced insolvencies and significant strain linked to high energy costs, regulatory burdens, and export challenges.”[6]
This contrasts with transition-focused sectors. Within the Advanced Manufacturing sector, committed government support for clean energy, decarbonisation and sustainability is instilling greater confidence, investment, and growth. A clear example of this is the Drive35 Funding Programme, with over £470 million in grant support for the UK automotive sector for R&D, scale-up, and transformation.[7] And this government support is facilitating inward investment, such as Nissan’s £450 million into its Sunderland plant, to kickstart the corporation’s EV36Zero vision.[8]
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Conflict in the Middle East: a new energy crisis for British industry?
The Q1 2026 survey data was collected prior to the current crisis in the Middle East, though MAKE UK will be looking at this in-depth in their Q2 report – and we’ll come back to that in a future blog. But, for now, the global implications of the current crisis are already having ramifications for UK manufacturers. As at publication of the report, with gas prices increasing by over 50% – reportedly up to 80% – this feeds directly into higher electricity costs.[9] At this point, the response from British business leaders to the cost and logistical issues presented by this conflict are hard to predict, but previous experience indicates that companies will,
“aim to bring forward orders where possible, hold higher inventories, and start revising budgets which could impact employment and investment decisions.”[10]
In the current geopolitical landscape, there’s potential for future energy price shocks and we still have limited government support for the bulk of UK manufacturing – despite active lobbying by industry bodies. Businesses that want to grow – and to invest in digitisation to stay competitive – must negotiate both the short-term impact of energy price volatility as well as longer-term demands: to decarbonise, to electrify operations for efficiency and competitiveness, and to position themselves well for future funding opportunities arising out of the Modern Industrial Strategy.
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Voltage Optimisation – for short- and long-term energy management
In a context where budgets are being reviewed and investment decisions are being taken – specifically looking at risk vs reward – many companies can make efficiency gains by reviewing their energy management strategies and existing infrastructure. And Voltage Optimisation (VO) can reap immediate rewards, reducing energy usage and improving energy efficiency, with transparent data to demonstrate ROI from installation.
Where there are benefits to be gained from Voltage Optimisation, our customers tell it best. As a company committed to market-leadership in sustainable manufacturing, Wernick Group have an energy reduction strategy across their estate and operations.
“Like other manufacturers, we have faced increasing price pressures from the market, so we have been looking at cross-cutting opportunities to reduce both operational costs as well as carbon emissions. VO was very appealing.”
Alexis Massey, Group Sustainability Manager, Wernick Group
- Two Powerstar VO units have reduced energy consumption by 9.2%, equating to 19 tonnes CO2 saved each year.
- Ongoing cost savings projected at approx. £18k p.a.
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So, what is Voltage Optimisation?
Where voltage management, in general, addresses imbalances – whether overvoltage, under-voltage, or phase imbalances – VO is specifically designed to manage any over-voltage from your grid supply to your on-site assets, thereby reducing energy consumption and lowering energy costs.
As electrification increases in pace to keep British manufacturing competitive, stabilising voltage to the correct levels – with better-conditioned power – can help improve your site’s efficiency while cutting energy spend. As we continue to electrify across the UK, any reduction in wasted grid energy can help if your requirements are taking you close to your agreed supply capacity: incremental steps in grid energy reduction can facilitate further electrification strategies. And dynamic VO offers real-time management and data, whereby consumption is automatically logged to help inform energy management decisions.
The basics: VO optimises incoming grid voltage to match on-site demands, and so it reduces energy usage – and spend – where over-voltage is an issue. While the UK’s nominal voltage is 230V, supply can legally reach 253V. This can create a mismatch: wasting energy; creating unnecessary emissions that hamper any decarbonisation strategy, and placing equipment under strain – which can lead to the need for early replacement and significantly increase maintenance costs.
To ensure VO is a viable – and efficient – solution, it is essential to determine the nature of your on-site electrical loads. And this is where some companies have formed a negative impression of VO. Many businesses have already begun to decarbonise and improve energy efficiency through switches that make immediate sustainability / efficiency gains, e.g. LED lighting, which gives a fixed output, irrespective of supply voltage – LEDs are voltage independent. Similarly, with much modern ICT equipment, e.g. laptops and computer screens. And, for manufacturing plant, the same is true for variable speed drive (VSD) controlled motors. While this negates the principal benefit of VO, voltage independent equipment may still benefit from the power conditioning and stabilisation that VO provides. However, as voltage independent loads, each of these should be factored into a survey to accurately determine the suitability and benefits of VO for any site.
Voltage dependent loads are linear resistive, where power demand (kW) is expressed as a function of voltage:
Power = Voltage² / Resistance
Here, if voltage increases, energy consumed rises disproportionately. In these circumstances, there can be a clear initial case for exploring VO for efficiency gains and potential cost-savings.
As a middle ground, there are partially voltage dependent loads. For example, a VSD-controlled motor will, in itself, be independent of supply voltage. However, this large motor may be combined with smaller – uncontrolled – motors or pumps, where VO may prove beneficial.
Understanding your specific loads is critical to establishing the potential benefits of VO to your business, and this will be dependent on a survey.[11]
- Measure voltage and power
- Measure voltage drops across the site
- Determine the proportion of energy consumption that is voltage dependent
- Identify critical loads
- Calculate potential energy savings
- Decide power rating of Voltage Optimisation equipment
For a deeper-dive into VO: As one of the UK’s leading manufacturers and suppliers of VO systems, Powerstar have contributed to a comprehensive guide to Voltage Optimisation Systems, with leading trade association, BEAMA. Their full guide can be found here. Alternatively, for a deep-dive into VO, take a look at our recent blog, where we look more closely at the technology: why voltage varies; load types, and dynamic VO vs fixed VO: https://powerstar.com/blog/how-voltage-optimisation-saves-energy-and-protects-electrical-assets/
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In the voltage-dependency mix, which sectors benefit from VO?
A site survey is critical to establishing the business case for VO implementation, but there are sectors where it will generally be beneficial, with the potential for immediate efficiency gains and as part of a longer-term decarbonisation / electrification strategy. In broad terms, high energy-consumption, variable loads, and sensitive equipment form a useful starting point, in sectors including manufacturing; hospitality and retail; in healthcare, and in the public sector. For the focus of this blog – the manufacturing sector – VO can most benefit companies whose operations are reliant upon:
- Energy-intensive motor systems (where not solely VSD-controlled). Here, motors, pumps, and conveyor systems operating at overly-high voltage will run hotter, consume excess power, while operating under unnecessary strain.
- Sensitive equipment, such as CNC machines, automated production and packaging lines require stable voltage for efficient operation. VO can help reduce failure rates and unnecessary downtime – with the associated costs for production disruption.
- Heavy machinery – where fluctuating loads on production lines can benefit from the adjustments found with dynamic VO, which monitors and manages voltage in real-time.
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Where VO works: tangible, measurable, benefits
At Powerstar, we’ve worked with clients and proven the benefits of VO for better energy management.
For The Co-operative Group we offered guaranteed energy savings, compatibility, and transparency through dedicated project management and ongoing performance analysis.
Each site is different – highlighting the importance of the site survey. Each Powerstar unit is bespoke to each site’s electrical characteristics.
For one store, VO has reduced energy consumption by nearly 14%, equating to over £12,000 costs savings p.a.
For M I Dickson, the largest family-owned food manufacturer and retailer in the Northeast, energy efficiency and carbon reduction were critical.
Powerstar’s site survey showed unstable, and overly-high voltage supply. Dynamic VO has:
- Reduced energy consumption by more than 8,000 kWh (while production volume has increased by nearly 10%)
- Used 52.8 kWh fewer per tonne of product
- Generated an energy saving of 13%
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Why don’t more UK businesses implement VO?
With headline results such as these, it might seem odd that more companies aren’t already factoring VO into their energy management mix. So: what is stopping businesses from benefitting from VO technology?
There seem to be several reasons – from lack of awareness to lack of trust, with operational issues factoring:
- Capital investment: This has been cited as a reason for lack of uptake, where upfront purchase and installation costs can seem prohibitive or, at minimum, require a clear business case for investment.[12] Given energy shocks in recent years, and ongoing, together with the UK-wide impetus for electrification, we would suggest that this may not have the same resonance as in previous years: the business case for investment in VO may be more robust, particularly in light of recent and forthcoming MAKE UK manufacturing reports.
- Maintenance and disruption: where businesses may perceive VO installation as a disruption to operations and, as another asset requiring maintenance, an additional potential point-of-failure and an expense. But we’ve seen how over-voltage represents a point-of-failure in its own right, increasing wear and tear on your critical assets, which can lead to unnecessary maintenance and downtime. Here, VO supports your maintenance cycle – reducing risk, despite requiring some scheduled maintenance as a new critical asset in its own right. The payback can be far greater than the outlay.
- Lack of awareness: Many businesses quite simply aren’t aware of VO. It’s not a ‘sexy’ technology. It’s a proven technology, that works. Unlike clearly visible assets – wind turbines, or solar panels – a VO unit doesn’t make a strong visual statement about your Net Zero strategy – despite the returns it can offer when appropriately specified. Which brings us on to our next issue:
- Lack of trust: As the decarbonisation agenda became more widely-recognised, overinflated claims as to VO’s returns damaged the reputation of the technology as a whole. This is a critical point, whereby the only way for VO specialists to demonstrate the technology’s benefits, to accurately estimate efficiency gains and to establish the payback period so as to justify customer investment, is to factor a site survey as the first stage in any potential project.
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Is VO right for your business?
At Powerstar, the first stage after initial conversation about the suitability of VO is a professional site survey, undertaken by our expert engineers.
We’ve been market-leaders in energy management for more than 20 years – trusted by some of the UK’s most renowned businesses to recommend, implement and manage VO installations, large- and smaller-scale, from simple single installations to complex, multi-location projects. We provide our own VO solutions – all designed and manufactured in the UK – either off-the-shelf or bespoke to your site requirements.
Whether you are considering VO as part of your decarbonisation and electrification journey, or want to find out if VO can bring the immediate efficiencies and energy cost savings your business needs, we can help determine whether VO is right for you.
Get in touch to see how your business could benefit by working with one of the UK’s most trusted VO specialists.
[1] https://www.britishchambers.org.uk/wpcontent/uploads/2026/02/BCC_BRO9891_ENERGY_BILLS_V4_DIGITAL_compressed.pdf
[2] ONS, The impact of higher energy costs on UK businesses: 2021 to 2024, 19 May 2025, as referenced in Financial Times, ‘Businesses say Britain’s “jam tomorrow” energy plans threaten their survival’, 7 January 2026
[3] The Times, Why are UK energy bills so high? The costs explained, 17 January 2025
[4] https://www.makeuk.org/insights/reports/shape-british-industry
[5] https://www.makeuk.org/insights/reports/manufacturing-outlook-2026-q1
[6] Ibid p.18
[7] https://www.apcuk.co.uk/funding/
[8] https://europe.nissannews.com/en-GB/releases/next-generation-nissan-leaf-brings-ev36zero-vision-to-life-at-sunderland-plant
[9] https://www.makeuk.org/insights/reports/manufacturing-outlook-2026-q1
[10] Ibid p.20
[11] https://www.beama.org.uk/static/uploaded/f7b5ff54-f783-4df4-89efc3287358d851.pdf
[12] https://els.lease/guide-to-voltage-optimisation-maximising-energy-efficiency-and-savings-for-schools-and-business/
