UK launches British Industrial Competitiveness Scheme to cut manufacturer energy costs

The UK government has launched the British Industrial Competitiveness Scheme (BICS) to reduce electricity costs for more than 10,000 manufacturers across England, Scotland, and Wales. The initiative, managed by the Department for Business, Innovation, Science and Trade (BIST), aims to bolster national competitiveness and mitigate carbon-leakage risks by addressing high non-commodity policy charges.

Eligible businesses, including those in the aerospace, defence, and chemical sectors, can apply for relief between October 1 and November 30, 2026. The scheme is designed to slash net electricity bills by up to 25%, or approximately £35 to £40 per MWh, by exempting qualifying manufacturers from certain statutory mechanisms such as the Renewables Obligation, Feed-in Tariffs, and Capacity Market charges.

Approved participants in the first cohort will receive a five-year exemption starting in April 2027, along with a lump-sum payment in 2027 that backdates relief to April 2026. Business Secretary Jonathan Reynolds stated the support is intended to help companies redirect funds from energy costs toward business growth as part of a broader Modern Industrial Strategy.