UK Manufacturers Set for Lower Electricity Bills

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More than 10,000 manufacturers across Great Britain can now apply for government support to reduce their electricity bills by up to 25% under the British Industrial Competitiveness Scheme (BICS).

Applications opened on 1 October 2026 and will close on 30 November 2026, with approved businesses expected to begin receiving electricity cost relief from April 2027.

Part of the UK Government’s Modern Industrial Strategy, the scheme aims to strengthen British manufacturing competitiveness by reducing energy costs and encouraging investment. Support is targeted at high-growth industries including aerospace and defence alongside the foundational manufacturing sectors that supply them.

BICS will exempt eligible manufacturers from certain electricity policy costs, including the Renewables Obligation and Feed-in Tariffs from April 2027, with Capacity Market exemptions following in October 2027. Actual savings will vary between businesses.

Business Secretary Jonathan Reynolds said:

“We will reindustrialise Britain by tackling one of the biggest pressures facing manufacturers and cutting their electricity bills.”

Eligible manufacturers applying in 2026 will also be considered for an additional lump-sum payment equivalent to approximately one year’s relief.

The scheme complements the existing British Industry Supercharger, which the Government says reduces annual electricity costs for energy-intensive industries including steel, chemicals, glass, paper and ceramics by more than £400 million.

Further government support includes £350 million for the chemicals sector and £120 million for ceramics, aimed at addressing high energy costs and strengthening industrial resilience.

Manufacturers are encouraged to check their eligibility and submit applications through the official BICS application service before the November deadline.