Applications opened today for a scheme that could cut electricity bills for UK manufacturers by up to 25% from April 2027. The British Industrial Competitiveness Scheme (BICS) is designed to help more than 10,000 manufacturers facing rising energy costs in sectors including aerospace and defence, as well as suppliers such as chemical makers.
Why the scheme was launched
British industrial electricity prices have been among the highest in the G7 group of advanced economies. This has raised concerns about the UK's competitiveness as the war in Iran pushes up global oil and gas prices.
BICS exempts eligible businesses in England, Scotland and Wales from certain charges that support green energy and back-up power supply systems. This will reduce their bills by up to £40 per megawatt hour.
How to apply
Applications opened today, October 1, and eligible businesses are urged to apply by 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 for industry
Data from the Department for Business shows that around 98% of firms in the eight high-growth industries targeted by the programme are small businesses. Companies confirmed as eligible for BICS and applying this year will also be entitled to an additional lump-sum payment of around a year’s relief under the scheme.
Additionally, the Government is providing support to some energy-intensive industries, including steel, glass and ceramics, through the British Industry Supercharger, which it says cuts their electricity costs by more than £400 million a year. Extra funding of £350 million and £120 million has also been provided to the chemicals and ceramics sectors, 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."
