Unlocking Opportunity: The British Industrial Competitiveness Scheme — What It Means for Manufacturers
In today's global market, energy costs remain one of the most significant challenges facing UK manufacturers. With electricity prices among the highest in the G7, staying competitive is harder than ever — especially for energy-intensive sectors such as automotive, aerospace, and chemicals. The British Industrial Competitiveness Scheme (BICS), part of the UK’s new industrial strategy, presents a game-changing opportunity.
At Clear Bridge, we help manufacturing companies navigate this transformative policy and maximise its benefits.
What Is the British Industrial Competitiveness Scheme?
The British Industrial Competitiveness Scheme is a government-led initiative, planned from 2027, designed to reduce electricity costs for over 7,000 energy-intensive UK manufacturing businesses.
Here’s how it works:
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Eligible companies will receive a cost reduction of around £35–£40 per MWh, roughly a 25% cut in electricity costs.
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To deliver this saving, participating firms will be exempt from several levies, including:
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Renewables Obligation (RO)
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Feed-in Tariffs (FiTs)
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The Capacity Market charge
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The aim is clear: to align UK industrial electricity prices more closely with those of major European economies and thereby level the playing field.
Who Stands to Benefit?
The scheme is primarily targeted at:
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Frontier manufacturing sectors, such as automotive and aerospace (part of the government’s IS-8 advanced manufacturing sectors)
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Foundational industries in their supply chains, especially sectors like chemicals.
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Energy-intensive firms already contributing significantly to the UK’s industrial ecosystem.
That said, eligibility criteria are still under consultation. For example, in the chemicals industry, there is a strong push for the scheme to include all SIC-coded subsectors — not just the largest players. The government has indicated it will carry out a review of the scheme in 2030.
Why the Scheme Matters: Strategic Impacts for Manufacturers
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Enhanced global competitiveness
By reducing electricity costs, the BICS removes a major cost disadvantage for UK manufacturers when competing against European and global peers. -
Encouragement to invest
Lower and more predictable energy costs make long-term capital investments, such as new production lines or low-carbon technology, more financially viable. -
Supply-chain strengthening
Supporting foundational industries (e.g., chemicals) means more robust and competitive upstream sectors — a key enabler for advanced manufacturing. -
Grid and infrastructure support
Alongside the BICS, the government is launching a Connections Accelerator Service to streamline access to the electricity grid for new or expanding industrial projects.
Where Your Business Could Use Expert Guidance
With the BICS still being shaped, there’s a real opportunity for manufacturers to prepare and position themselves for eligibility. That’s where Clear Bridge comes in:
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Eligibility Assessment: We help you understand whether your business could qualify under the likely criteria (e.g., sector, electricity intensity, SIC code thresholds).
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Financial Forecasting: We model the potential cost savings under BICS and how they could impact your bottom line, helping prioritise investment decisions.
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Application Support: When the final consultation rules are released, we will guide you through the application process to ensure you maximise the support available.
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Long-Term Strategy: Beyond BICS, we help integrate this energy-saving opportunity into your broader industrial and sustainability roadmap.
Taking Action: How to Prepare Now
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Benchmark your energy costs. Understand your current electricity usage, the levies you pay, and how much this scheme could save you.
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Engage with trade associations. Industry bodies (e.g., in chemicals or aerospace) can help shape the consultation — and staying involved ensures your voice is heard.
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Develop your case. Begin collecting data (SIC codes, energy usage, financials) that will be needed when the formal application opens.
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Talk to an expert. Contact us at andy@clearbridgeconsultancy.co.uk or 01625 919854 — we can offer an initial consultation to map out how BICS applies to your business.
Why Choose Clear Bridge Consultancy?
We combine deep expertise in energy policy, industrial finance, and manufacturing operations. With our guidance, clients have unlocked tens of millions in operational savings and reinvested strategically into growth and innovation.
By partnering with us to navigate the British Industrial Competitiveness Scheme, your business can :
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Reduce energy costs meaningfully
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Make confident, data-driven investment decisions
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Secure a stronger competitive position in the UK and abroad
Conclusion
The British Industrial Competitiveness Scheme offers a powerful lever for UK manufacturing — a way to reduce core operating costs and improve global competitiveness. But realising the full benefits requires foresight, preparation, and expert insight.
At Clear Bridge, we are ready to help you seize this opportunity. Get in touch today to start shaping your future under this landmark industrial scheme.
