Reeves unveils 25% electricity bill cut for 10,000 manufacturers as energy costs bite

"The British Industrial Competitiveness Scheme (BICS) will be widened by 40 per cent, bringing an additional 3,000 firms under its umbrella. The scheme will exempt qualifying businesses from the indirect costs of three legacy green levies: the Renewables Obligation, Feed-in Tariffs and the Capacity Market."

"Treasury officials put the value of the relief at roughly £35 to £40 per megawatt hour, or up to £600 million a year once the scheme takes effect in April 2027."

"In a concession to firms that have been lobbying hard for immediate relief, the Chancellor has also agreed to a one-off backdated payment in 2027, replicating the support manufacturers would have received had BICS been operational from April 2026."

Rachel Reeves announced a plan to cut electricity bills by up to 25% for more than 10,000 British manufacturers. The British Industrial Competitiveness Scheme (BICS) will expand by 40%, adding 3,000 firms. The scheme will exempt qualifying businesses from certain green levies, providing relief valued at £35 to £40 per megawatt hour, totaling up to £600 million annually. A one-off backdated payment will be made in 2027, with exemptions starting in April 2027. Eligibility includes a wide range of manufacturing sectors.

Read at Business Matters