The UK government has announced a consultation on the British Industrial Competitiveness Scheme (BICS), aiming to cut electricity bills for over 7,000 manufacturers by up to 25%, in a bid to enhance global competitiveness and foster industrial growth.
The UK government has launched a significant consultation on the British Industrial Competitiveness Scheme (BICS), aiming to reduce electricity bills for more than 7,000 manufacturers by up to 25%. Announced by Business and Trade Secretary Peter Kyle at the CBI conference, this move forms a central pillar of the government’s modern Industrial Strategy, targeting the reduction of industrial electricity costs from April 2027 and bolstering access to finance for companies with high growth potential.
UK industrial electricity prices are among the highest in the G7, a factor that has consistently hampered British firms’ global competitiveness. The new scheme intends to level the playing field for manufacturers in frontier sectors, such as automotive, aerospace, and chemicals, as well as foundational industries that supply these sectors. Eligible businesses will be exempt from indirect charges associated with the Renewables Obligation, Feed-in Tariffs, and the Capacity Market, which together contribute significantly to industrial energy costs. This exemption is expected to cut eligible companies’ electricity bills by approximately £35-£40 per megawatt hour.
An eight-week consultation runs until 19 January 2026, during which the government is seeking views on scheme eligibility and its overall approach. Following the consultation, the government intends to publish its response within twelve weeks, finalising details on the sectors and criteria that will benefit from the scheme.
Alongside BICS, the government has pledged a £4 billion boost to the British Business Bank to facilitate greater investment in promising domestic scale-ups within the industrial strategy sectors. This funding increase aims to accelerate the bank’s investment pace by two-thirds and support around 180,000 UK businesses over five years, potentially creating 370,000 new jobs and contributing £68 billion in gross value added to the UK economy. Speaking at the announcement, Peter Kyle emphasised how high energy costs and poor finance access have been anchors dragging down growth and innovation.
The industrial sector in particular has voiced strong concerns about energy prices. Surveys by Make UK and PwC, as well as the Adam Smith Institute, reveal that around two-thirds of manufacturers cite high energy costs as a dominant concern, significantly restricting their ability to compete internationally. In response, the CBI’s Chief Economist Louise Hellem highlighted the importance of supporting firms to electrify and transition energy usage, framing it as crucial not only for industrial competitiveness but also for advancing the UK’s broader energy transition goals.
The aerospace sector’s voice was also notable, with Kevin Craven, CEO of ADS, welcoming the government’s commitment to tackling industrial energy costs and improving finance access, recognising these as key challenges for the industry.
This initiative complements other government schemes aiming to reduce energy burdens on UK businesses. For example, a parallel government programme offers a 90% discount on electricity network charges for about 500 of the UK’s most energy-intensive businesses, expected to save over £400 million annually. Collectively, these measures mark a concerted effort to align UK industrial energy costs with European competitors, support job retention, and stimulate new investment.
While the consultation is open, the government’s plan presents a promising framework to reduce long-standing energy cost challenges, provide financial backing for scale-ups, and ultimately strengthen the UK’s industrial backbone. Manufacturers and stakeholders are closely watching the outcome, hopeful that the final scheme will robustly support sustainable industrial growth in a highly competitive global market.
- https://www.maintenanceandengineering.com/2025/11/27/government-consults-on-plan-to-cut-electricity-bills-for-thousands-of-manufacturers-by-up-to-25/ – Please view link – unable to able to access data
- https://www.gov.uk/government/consultations/british-industrial-competitiveness-scheme-consultation-on-scheme-eligibility-and-approach – The UK government has launched a consultation on the British Industrial Competitiveness Scheme (BICS), aiming to reduce electricity costs for manufacturing frontier industries and foundational industries supplying them. Eligible businesses will be exempt from indirect costs of the Renewables Obligation, Feed-in Tariffs, and the Capacity Market. The consultation seeks views on the scheme’s approach and eligibility criteria, with responses due by 19 January 2026. The scheme is part of the broader Industrial Strategy to support British industry by reducing electricity burdens and unlocking investment.
- https://www.gov.uk/government/news/government-acts-on-top-business-concern-and-cuts-electricity-bills-for-thousands-of-manufacturers-by-up-to-25 – The UK government has announced the British Industrial Competitiveness Scheme (BICS), aiming to reduce electricity bills for over 7,000 manufacturers by up to 25%. The scheme will provide exemptions from indirect costs of the Renewables Obligation, Feed-in Tariffs, and the Capacity Market. Additionally, the British Business Bank will increase its investment pace by two-thirds, with a £4 billion boost for businesses in Industrial Strategy sectors. The consultation on BICS will close on 19 January 2026, with a response published within twelve weeks.
- https://www.gov.uk/government/news/british-businesses-to-save-over-400m-a-year-as-government-slashes-electricity-costs – The UK government is set to save British businesses over £400 million annually by slashing electricity costs from April 2026. Approximately 500 of the UK’s most energy-intensive businesses will benefit from a 90% discount on their electricity network charges. This unprecedented support aims to align UK industrial energy costs with European competitors, protecting jobs and attracting new investment. The initiative is part of the government’s modern Industrial Strategy to boost investment and create well-paid jobs over the next decade.
- https://www.gov.uk/government/news/powering-britains-future-electricity-bills-to-be-slashed-for-over-7000-businesses-in-major-industry-shake-up – The UK government has unveiled a new Industrial Strategy to reduce electricity costs for over 7,000 businesses by up to 25% from 2027. The strategy includes a ten-year plan to boost investment, create skilled jobs, and make Britain the best place to do business. It addresses high electricity prices and long waits for grid connections, aiming to support sectors like automotive, aerospace, and chemicals. The plan also includes a £4 billion boost for the British Business Bank to support domestic scale-ups.
- https://www.gov.uk/government/news/government-acts-on-top-business-concern-and-cuts-electricity-bills-for-thousands-of-manufacturers-by-up-to-25 – The UK government has launched the British Industrial Competitiveness Scheme (BICS), aiming to reduce electricity bills for over 7,000 manufacturers by up to 25%. The scheme will provide exemptions from indirect costs of the Renewables Obligation, Feed-in Tariffs, and the Capacity Market. Additionally, the British Business Bank will increase its investment pace by two-thirds, with a £4 billion boost for businesses in Industrial Strategy sectors. The consultation on BICS will close on 19 January 2026, with a response published within twelve weeks.
- https://www.gov.uk/government/news/powering-britains-future-electricity-bills-to-be-slashed-for-over-7000-businesses-in-major-industry-shake-up – The UK government has unveiled a new Industrial Strategy to reduce electricity costs for over 7,000 businesses by up to 25% from 2027. The strategy includes a ten-year plan to boost investment, create skilled jobs, and make Britain the best place to do business. It addresses high electricity prices and long waits for grid connections, aiming to support sectors like automotive, aerospace, and chemicals. The plan also includes a £4 billion boost for the British Business Bank to support domestic scale-ups.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative is based on a recent press release from the UK government, dated 24 November 2025, announcing the British Industrial Competitiveness Scheme (BICS) consultation. This indicates high freshness. The earliest known publication date of substantially similar content is 24 November 2025. The report is not republished across low-quality sites or clickbait networks. The press release format typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The narrative includes updated data and is not recycled from older material. No similar content appeared more than 7 days earlier. The update justifies a higher freshness score.
Quotes check
Score:
10
Notes:
The direct quotes from Business and Trade Secretary Peter Kyle in the report are unique to this release, with no identical matches found in earlier material. This suggests potentially original or exclusive content.
Source reliability
Score:
10
Notes:
The narrative originates from a reputable organisation, the UK government, as evidenced by the press release on GOV.UK. This is a strength, indicating high reliability.
Plausability check
Score:
10
Notes:
The claims in the narrative are plausible and align with recent government initiatives. The BICS consultation is a logical extension of the UK’s Industrial Strategy, aiming to reduce electricity costs for manufacturers. The narrative is consistent with the government’s stated objectives and recent actions.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is based on a recent and original press release from the UK government, detailing the British Industrial Competitiveness Scheme consultation. The source is highly reliable, and the claims are plausible and consistent with the government’s objectives. No issues with freshness, originality, or disinformation were identified.
