The UK government has announced cuts on electricity bills for 10,000 manufacturers (UK government press release, 15/04/2026). The cuts will go up to 25% starting April 2027, representing an investment of up to GBP600m (EUR690m), with no increase to household and other business energy bills. The measure will be funded through a combination of changes within the energy system and Exchequer funding.
The cuts represent the next phase of the Government’s plan to boost Britain’s competitiveness through its British Industrial Competitiveness Scheme, which has been expanded by 40%, covering an extra 3,000 businesses from the originally targeted 7,000 in 2025, when the scheme was announced. The scheme targets energy-intensive sectors that will be particularly affected due to rising electricity costs, and the expansion covers sectors such as the automotive and aerospace, steel and pharmaceuticals. The new firms will be eligible for a one-off payment for the support that they would have received if BICS had been in place from April 2026.
Beneficiaries of the BICS are exempted from the indirect costs of three electricity schemes (Renewables Obligation, Feed-in Tariffs, and the Capacity Market) worth about GBP35-40/MWh (EUR40-45/MWh).