 which it says will cut electricity costs by up to 25% for over 7,000 manufacturers.){kind=link}
The government has launched a consultation on the new British Industrial Competitiveness Scheme (BICS) which it says will cut electricity costs by up to 25% for over 7,000 manufacturers.
The initiative, due to launch in April 2027, will be focused on high growth industries in England, Scotland and Wales, including automotive and aerospace and foundational sectors in their supply chains, like chemicals.
It aims to reduce eligible companies’ bills by around £35-£40 per megawatt hour, or up to 25%.
The British Industrial Competitiveness Scheme consultation will close on 19 January, and the government said it will publish its response to the consultation within 12 weeks.
Eligible businesses must operate in frontier manufacturing industries within the government’s eight priority sectors or in foundational manufacturing industries supplying those frontier industries and meet the required level of electricity intensity.
The priority sectors, also known as the IS-8, are advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
British industrial electricity prices are currently some of the highest in the G7, and the government said high energy prices have consistently been raised as one of the top issues for businesses.
For example, 65% of respondents to a Make UK and PWC survey said high energy costs reduce their ability to compete and that it is a ‘dominant concern for manufacturers’, and 4% of businesses in the latest business confidence survey from the Adam Smith Institute said high energy costs are a ‘major concern’.
Louise Hellem, CBI chief economist, said:
“Businesses have long warned that soaring energy prices are not just a cost burden, they’re an investment barrier. This consultation marks another welcome step forward in tackling a significant drag on economic growth.
“Supporting firms to electrify is also critical to accelerating the energy transition and safeguarding the UK’s industrial competitiveness.
“Government must now move quickly, in partnership with industry and energy suppliers, to set clear eligibility rules, delivery mechanisms and funding streams to close the industrial electricity price gap between the UK and its G7 peers.”