UK Expands BICS to 10,000 Manufacturers, Offering Up to £40/MWh Power Relief
Updated
Updated · RSM UK · Jun 11
UK Expands BICS to 10,000 Manufacturers, Offering Up to £40/MWh Power Relief
1 articles · Updated · RSM UK · Jun 11
Summary
April 2026 consultation results expanded the British Industry Competitiveness Scheme by 40% to about 10,000 eligible manufacturers, a much broader reach than earlier plans.
Eligibility was shifted from business-level to sector-level electricity intensity, covering frontier and foundational manufacturing sectors that make qualifying products under SIC4 and HS6 code tests.
Eligible companies will be exempt from indirect renewable-transition costs including the Renewables Obligation, Feed-in Tariffs and Capacity Market charges, with savings of up to £40/MWh.
The expansion targets a competitiveness problem rooted in high UK power prices: gas still supplies over 30% of generation, 43.5% of energy was imported in 2025, and energy-intensive industry output hit a 35-year low by end-2024.
BICS is due to start in April 2027 after a second consultation, with detailed guidance expected in autumn 2026 and a 2030 review likely to link support more closely to energy-efficiency and decarbonisation efforts.
With over 40% energy import dependency, how will the UK shield its subsidized industries from the next global energy crisis?
Can Britain's billion-pound subsidy truly reverse a 35-year manufacturing decline, or is it just delaying the inevitable?
British Industrial Competitiveness Scheme: 25% Electricity Bill Relief for Over 10,000 UK Manufacturers from 2027
Overview
The UK government has announced a major expansion of the British Industrial Competitiveness Scheme (BICS), aiming to help manufacturers cope with persistently high energy costs. Building on its 2025 framework, the expanded scheme will launch in April 2027, with an annual budget of £600 million. This intervention will extend support to over 10,000 manufacturers, a significant increase from previous coverage. The move comes as UK industrial electricity prices remain high and global energy markets stay volatile, highlighting the urgent need for government action to protect domestic industry and strengthen the nation’s economic resilience.