A Major New Government Scheme to Cut Manufacturers’ Electricity Bills…

The UK Government has opened a consultation on the British Industrial Competitiveness Scheme (BICS) — a proposal that could reduce electricity bills by up to 25% for more than 7,000 eligible manufacturers, with support expected to begin from April 2027.

What the BICS proposal is targeting

The scheme is aimed largely at energy-intensive manufacturing sectors, including areas such as automotive, aerospace and chemicals. If implemented, qualifying businesses could see a meaningful drop in operating costs, helping to unlock reinvestment, improve productivity, and strengthen longer-term planning.

A benefit for some — but not for all

However, it’s also clear that many manufacturers may not meet the qualifying criteria, which means their electricity cost position could remain largely unchanged.

Why this matters across the supply chain

That divide matters beyond individual sites. It has real implications for the wider manufacturing supply chain. Businesses that don’t qualify may continue to face high power costs while supplying customers who benefit from lower electricity prices. Understanding where your organisation sits in that shifting landscape will be important for competitiveness, operational decisions, and future commercial conversations.

How GLEG supports manufacturers

At GLEG, we support manufacturers of all sizes in making sense of changing policy, costs, and market dynamics. Whether your organisation qualifies for BICS or not, having a clear, evidence-based energy strategy is becoming increasingly critical as the industrial energy landscape evolves.

Key dates and what happens next…

The BICS consultation closes on 19 January 2026, with the Government expected to publish its response within 12 weeks of that date. We’ll be monitoring the outcome closely and sharing what it means for manufacturers and the supply chain.

For more information contact us at hello@gleg.co.uk.