“When it comes to energy costs, our British industrial competitiveness scheme will save more than 10,000 manufacturers up to 25% of their electricity bills.”

Where it stands

The scheme is in the government's plans (Modern Industrial Strategy, June 2025; consultation responses of 16 April and July 2026), and applications opened on 1 October 2026 and close on 30 November 2026. Exemptions on bills start in April 2027. Draft regulations amending the Renewables Obligation and Capacity Market rules were laid on 7 September 2026 and need approval by both Houses; none had been made by 7 October 2026. The Exchequer funding is due to be scored at Budget 2026, so the card stays at In plan.

What has happened

1. Sep 2026Minister for Reindustrialisation Blair McDougall tells the Commons the scheme will save more than 10,000 manufacturers up to 25% of their electricity bills, Promised
2. Oct 2026Applications open until 30 November 2026; the government says eligible firms receive support from April 2027, In plan evidence

About the cost

Year shown: a typical year of the scheme from April 2027; the government gives an average yearly figure, not one for a named year. Its estimate is "around £600 million on average p.a." (government response, 16 April 2026); its press release the same day says "up to £600 million per year from April 2027". Central figure only, subject to final scheme design and consumption forecasts. Neither source says whether this includes the one-off additional payment in 2027, worth around a year's relief, for businesses that apply in the first window. The final impact assessment (7 September 2026), published with the draft regulations, puts the cost of BICS support at £3.8bn in present value over 2027-28 to 2034-35 (2025 prices), including the additional payment, or £3.2bn without it; that is a discounted eight-year total, not a yearly figure, so it is not used for the range. No independent costing has been published. Low–high is an editorial ±10% because the source gives a central figure only.

• Government response: BICS consultation on scheme eligibility and approach, 16 Apr 2026
• DBT and HM Treasury press release, 16 Apr 2026: Government cuts electricity bill for 10,000 manufacturers
• BIST impact assessment: British Industrial Competitiveness Scheme (final stage, 7 Sep 2026)

More detail

Related promises

• Cheap power plan to cut energy costsConservative PartyPromised
• Abolish the zero emission vehicle (ZEV) mandateConservative PartyPromised
• Cut energy bills by over £250 a yearReform UKPromised