Manufacturers have been invited to submit applications for a new scheme designed to reduce their electricity bills by as much as 25% from April 2027.
The British Industrial Competitiveness Scheme (Bics) is intended to support more than 10,000 UK manufacturers grappling with soaring energy costs across sectors including aerospace and defence, along with suppliers such as chemical producers.
High UK electricity prices
British industrial electricity prices have ranked amongst the highest in the G7 group of advanced economies, stoking fears over the UK's competitiveness as the Iran war continues to drive up global oil and gas prices.
Bics shields eligible businesses in England, Scotland and Wales from certain levies that fund green energy and back-up power supply systems, cutting their bills by up to £40 per megawatt hour.
Applications open
Applications open on Thursday, with qualifying businesses strongly encouraged to apply before November 30.
Business Secretary Jonathan Reynolds said: "We will reindustrialise Britain by tackling one of the biggest pressures facing manufacturers and cutting their electricity bills.
"I'd urge every eligible manufacturer to get your application in for the British Industrial Competitiveness Scheme.
This support will help companies spend less on energy and more on growing their business, unlocking the growth we want to see across the country."
Additional support
Approximately 98% of firms across the eight high-growth industries targeted by the programme are small businesses, according to the Department for Business. Firms confirmed as eligible for Bics and submitting applications this year will also be entitled to an additional lump sum payment equivalent to roughly a year's relief under the scheme.
The Government is further extending support to certain energy-intensive industries, including steel, glass and ceramics, through the British Industry Supercharger — a measure it claims reduces their electricity costs by more than £400 million annually.
The chemicals and ceramics sectors have also received additional funding of £350 million and £120 million respectively.
Energy Secretary Miatta Fahnbulleh said: "We're cutting electricity bills for thousands of manufacturers to help firms invest, grow and create good jobs.
"Meanwhile, we are pressing ahead to break the link with fossil fuels, upgrade our network, speed up connections with Great British Grid and transition to clean power, which is the only way to bring down bills for good."
