Britain’s biggest mobile network operators have warned ministers they may be forced to ration access to phone signals and introduce surge pricing at peak times, as the war in Iran sends wholesale energy costs spiralling and Whitehall shuts the sector out of its flagship industrial support package.

In a pointed intervention to Government, VodafoneThree, Virgin Media O2 and BT-owned EE have confirmed they are drawing up emergency contingency plans to manage ballooning electricity bills, after being pointedly omitted from the Chancellor’s British Industrial Competitiveness Scheme (BICS).

Among the measures being modelled behind closed doors are the throttling of data speeds, restricting access during periods of high demand, and charging customers a premium at peak times, a move that would mark a significant departure from the all-you-can-eat tariffs that have dominated the British mobile market for more than a decade.

Voice calls and mobile data are expected to bear the brunt of any rationing, though fixed-line broadband services could also be affected. Senior industry figures have further cautioned that relentless cost pressures could see 5G rollout plans shelved, with jobs either cut outright or shifted overseas.

Frustration is running deep in the industry following Rachel Reeves’s announcement last week that 10,000 manufacturers would see their electricity bills cut by up to 25 per cent under BICS. Although the measures are not due to take effect until April 2027, telecoms bosses argue that their sector, classed as critical national infrastructure, has an equally compelling case for state intervention.

“It’s a serious oversight,” one industry source told Business Matters. “It raises real questions about which parts of the economy this Government actually considers strategically important.”

The sums involved are far from trivial. Britain’s mobile networks consume just under one terawatt-hour of electricity annually, enough to power 370,000 homes. While operators routinely hedge their exposure to the wholesale market, prices have still climbed by 70 per cent in recent years, first on the back of Russia’s invasion of Ukraine and more recently following the closure of the Strait of Hormuz, the vital shipping lane that carries roughly a fifth of global oil and gas trade.

With UK electricity pricing still tethered to the gas market, the 33 per cent jump in gas prices since the outbreak of hostilities with Iran has fed directly through to operator cost bases. Unlike steelmakers or chemical plants, executives argue, mobile networks cannot simply shift demand to cheaper overnight hours. The “always on” nature of the infrastructure leaves them structurally exposed.

Any move to ration signal, understood to represent a worst-case scenario, would prove politically toxic in a country where consumers are already exasperated by patchy coverage. The UK currently props up the G7 table for 5G download speeds, and the broader economic stakes are considerable: digital connectivity is estimated to contribute £6.6bn annually to UK output.

The warning lands at an awkward moment for the Chancellor, who is already fielding criticism from manufacturing bodies that BICS is both too modest and too slow to arrive to stem further job losses.

A spokesman for Virgin Media O2 said: “Mobile and broadband networks are critical national infrastructure that almost every consumer and business relies on, yet despite their importance, telecoms companies have been excluded from support offered to other energy-intensive sectors. If the Government wants growth, productivity and resilience, it cannot overlook the digital networks the country depends on.”

VodafoneThree struck a similar note, with a spokesman adding: “We are disappointed that the Government has chosen not to include the telecoms sector in the British Industrial Competitiveness Scheme. At VodafoneThree we are committed to building the UK’s best network, creating jobs and fuelling billions of pounds of value to the UK economy. We urge the Government to consider the impact of rising energy prices on the vital telecoms sector that unlocks growth in all parts of the economy.”

For SMEs already grappling with patchy rural coverage and rising operating costs, the prospect of peak-time surcharges or throttled data could represent yet another headwind, and another reason to question whether Britain’s industrial strategy is keeping pace with the realities on the ground.

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SFO appeals for information on firms in West Midlands, Sheffield and Hampshire

Four people have been arrested in connection with a Serious Fraud Office investigation into companies delivering government energy efficiency contracts.

The Serious Fraud Office (SFO) has launched a public appeal and searched six sites across the UK as it announced a new investigation into three companies delivering Energy Company Obligation 4 (ECO4) contracts.

It is appealing for information on Cannock-based Warmfront, Sheffield-based JJ Crump, and Fareham-based South Coast Insulation Services in connection with ECO4 projects – a government energy efficiency scheme designed to tackle fuel poverty and help reduce carbon emissions – between 2022 and 2024.

The SFO said it understood that Warmfront was sold in 2024 and now trades under new management not connected to the investigation.

The investigation followed allegations that the three companies were involved in a “sophisticated conspiracy” by submitting claims where “little or no work was undertaken”.

It was suspected that energy companies were defrauded of at least £44 million in this way, the SFO said.

A UK-wide operation involving the SFO and the National Crime Agency resulted in investigators arresting four people on suspicion of conspiracy to defraud following searches of four homes in Cannock, Wolverhampton, Chilworth and Southwell and two commercial sites at Cannock and Killamarsh.

The SFO appealed to members of the public who had any information or had witnessed anything concerning to contact it in confidence by email at confidential@sfo.gov.uk.

SFO director Graham McNulty said: “This scheme was designed to reduce carbon emissions, help households cut costs and stay warm – instead, in many cases, we suspect little or no work was done.

“We are particularly keen to hear from installers and assessors who worked on these contracts and know what really happened.

“Our door is open, and coming forward is the right thing to do.”

Solicitor General Ellie Reeves said: “This scheme was meant to tackle fuel poverty and improve people’s homes.

“Instead, the Serious Fraud Office is investigating claims £44 million in public money was paid to companies that allegedly did little more than submit false invoices for work they failed to carry out.

“I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people, and I’m confident the SFO’s investigation into allegations of substantial fraud will deliver the answers victims and the public deserve.”

Tata Consultancy Services has been drawing renewed attention after Morgan Stanley reiterated its “Overweight” rating, maintaining an “In-line” industry view and setting a price target of Rs 2,880, implying about 10% upside from current levels.

TCS shares were trading nearly 2% lower at Rs 2,569 during Wednesday’s session, reflecting short-term market pressure even as longer-term sentiment improves.

Morgan Stanley’s thesis hinges on a potential recovery in revenue growth and valuation re-rating, suggesting that recent underperformance may be nearing an inflection point. The brokerage sees improving fundamentals positioning TCS to outperform peers as growth stabilizes.

The brokerage expects the stock to outperform the broader market index over the next 60 days.

It also forecasts around 4% revenue growth in FY27, which would be comparable to or better than many large-cap peers. After lagging in FY26, TCS’s weaker growth is already reflected in its valuation, with its P/E multiple trading at a notable discount to peers. Morgan Stanley anticipates this gap will begin to close, particularly as early large-cap earnings suggest TCS may be better positioned on FY27 growth expectations.

Currently, TCS trades at about a 19% discount to peers such as HCLTech, a gap the brokerage expects to narrow in the coming quarters.
Overall, the firm assigns a probability of over 80% to this scenario, indicating a high level of confidence, though it notes that such estimates are subjective and based on its internal assessment.On the technical side, data from Trendlyne shows the 14-day RSI for Tata Consultancy Services at 58.4. Typically, an RSI below 30 signals an oversold condition, while a reading above 70 indicates the stock may be overbought.

In terms of moving averages, the trend appears slightly bearish, with TCS trading below five of its eight simple moving averages (SMAs). The stock is currently holding above only its 10-day, 20-day, and 30-day SMAs.

Looking at the shareholding pattern for the March 2026 quarter, foreign institutional investors (FIIs) have trimmed their stake from 10.37% to 9.66%. In contrast, mutual funds have raised their holdings from 5.52% to 5.77%. Promoter ownership remains steady at 71.77% during the same period.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Shares of Transformers and Rectifiers (India) crashed more than 11% to Rs 295 on Wednesday after the company reported a 5% year-on-year (YoY) decline in consolidated net profit to Rs 89 crore for the fourth quarter of the financial year 2026, while announcing a dividend of Rs 0.25 per share.

The company announced the outcome of its board meeting in the post-market hours of Tuesday. WhileTARIL’s consolidated net profit declined, the company’s revenue from operations increased nearly 16% YoY to Rs 783 crore during the January-March quarter of FY26.

TARIL reported an order book of nearly Rs 5,005 crore with FY26 inflows at Rs 2,374 crore. Total income grew 18% YoY to Rs 805 crore, while total expenses increased nearly 21% YoY to Rs 686 crore.

On a standalone basis, the firm’s net profit gained a little over 1% YoY to Rs 77.5 crore, while revenue from operations increased 16% YoY to Rs 752 crore during the quarter under review. Net profit margin, however, contracted 170 basis points to 10%, while the EBITDA margin declined 200 basis points to 15.1%.

Net profit for the entire financial year 2026 gained more than 20% YoY to Rs 225.43 crore, while revenue from operations increased around 23% YoY to Rs 2,395.49 crore. EBITDA, meanwhile, rose 17% YoY to Rs 370 crore.

What TARIL’s management said

“FY26 has been a year of strong and consistent performance for TARIL. Our ability to deliver robust revenue growth along with sustained profitability reflects the strength of our execution capabilities and disciplined operational approach. The healthy order inflows and strong order book provide us with clear visibility for the coming periods. As we continue to scale our capacities and enhance our technological capabilities, we remain focused on improving efficiencies, strengthening margins, and delivering long-term value,” said Satyen J. Mamtora, Managing Director & CEO of TARIL.
The company added that it continues to benefit from improvements in manufacturing efficiency, supply chain optimisation and project execution. “In line with its growth plans, the company is undertaking a planned capex investment of approximately Rs 600 crore over the next 15 months to enhance capacity and support future demand,” it said.
Along with the Q4 results, TARIL announced a dividend of Rs 0.25 (25%) per equity share with a face value of Re 1 each. The record date to determine the eligibility of shareholders set to receive the payment is yet to be announced.

TARIL share price

TARIL shares dropped to an intraday low of Rs 295 apiece on NSE on Wednesday. The company has a market capitalisation of nearly Rs 9,150 crore.

In the longer term, the stock has rallied over 830% in three years and more than 3,350% in five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)