Summary
The UK government will expand a support program to help more large energy users, such as manufacturers, reduce their electricity costs by up to 25% starting April 2027. The program aims to make energy bills more affordable for about 10,000 firms in energy-heavy industries and strengthen the country’s economic competitiveness.
Key Facts
- The support plan, called the British Industrial Competitiveness Scheme (BICS), will expand from 7,000 to 10,000 companies.
- Eligible companies will be exempt from certain electricity charges linked to environmental goals, saving about £35-£40 per megawatt-hour.
- A one-time payment will be made in 2027 to cover support retroactively from April 2026.
- The scheme focuses on industries like steel, pharmaceuticals, automotive, aerospace, and plastics.
- The program costs £600 million and will not raise energy bills for households.
- Businesses can check their eligibility using their Standard Industrial Classification code on the government website.
- Critics say many businesses, including pubs and farmers, are excluded and that UK firms still pay more for energy than competitors in the EU and US.
- The government cites recent rises in oil and gas prices, influenced by the war in Iran, as a reason for expanding support.
