Mobile operators warn of higher bills and slower 5G rollout after energy support exclusion

Britain’s biggest telecoms groups say their exclusion from the government’s electricity relief scheme leaves critical national infrastructure exposed to rising power costs linked to the conflict involving Iran, with possible consequences for prices, investment and jobs

Britain’s biggest mobile operators have warned of higher costs, weaker investment and pressure on network capacity after being excluded from a government energy support scheme as electricity prices rise during the conflict involving Iran.

Telecoms companies say the latest extension of the British Industrial Competitiveness Scheme leaves them facing the full impact of higher power costs despite the sector’s role as critical national infrastructure and its need to keep networks operating around the clock.

The scheme gives around 10,000 energy-intensive businesses a 25 per cent discount on electricity bills. 

But operators including VodafoneThree, Virgin Media O2 and BT-owned EE were reportedly excluded from the scheme, leaving some of Britain’s biggest mobile networks exposed to the full impact of rising electricity costs.

Industry sources have described the omission as a “serious oversight”, saying mobile networks cannot cut usage in the way some manufacturers can because they must operate around the clock and cannot shift demand into cheaper off-peak periods.

Major operators consume just under one terawatt-hour of electricity a year each – enough to power about 370,000 homes – while electricity prices have risen by 33 per cent since the start of the war in Iran.

Telecoms bosses are said to be drawing up contingency plans for a worst-case scenario, including running networks at lower capacity to cut energy use. That could mean restricted access for customers or higher charges at peak times.

The warning from telecoms companies comes as the wider energy shock linked to the Iran conflict spreads across the economy.

European officials have also raised concerns over air travel disruption, with Lufthansa cutting 20,000 flights from its summer schedule and airlines urging governments to prepare for further fuel pressure.

READ MORE: AI is rewriting Europe’s networks from the inside out — and the continent isn’t ready. Reporting from Mobile World Congress in Barcelona, Marco Ryan finds an industry that has already begun redesigning its networks for the demands of artificial intelligence — raising urgent questions about whether Europe’s fragmented telecoms market and regulatory framework can keep pace.

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