Manufacturers offered help with soaring electricity costs

5 October 2026

More than 10,000 manufacturing businesses across Great Britain can now apply for a scheme that could cut their electricity bills by up to 25%.

The British Industrial Competitiveness Scheme (BICS) is aimed at manufacturers in sectors covered by the government’s Modern Industrial Strategy, as well as foundational industries that supply them. The size of the reduction will depend on the electricity price paid by each business and could vary over time. Support is due to begin in April 2027, with businesses needing to register by 30 November.

Under the scheme, eligible businesses in England, Scotland and Wales will not have to pay certain policy costs that are added to electricity bills. These include charges associated with the Renewables Obligation, Feed-in Tariffs and Capacity Market, which support the UK’s energy system.

Businesses confirmed as eligible will also receive an additional lump-sum payment equivalent to about a year’s support, although this will only be available to those applying this year.

The government is also extending the British Industry Supercharger, which provides more than £400m a year in support to energy-intensive industries including steel, chemicals, glass, paper and ceramics.

It has also allocated £350m for the chemicals sector and £120m for ceramics to address energy costs and support the resilience of those industries.

BICS is open to businesses of different sizes, including small and micro businesses, provided they meet the scheme’s eligibility requirements. The government says around 98% of businesses in the UK’s frontier sectors are small or micro businesses.