U.K. manufacturers can apply for a new government scheme that could cut electricity bills by up to 25% starting in April 2027.
Companies approved for the program that apply by Nov. 30 are also expected to receive a lump-sum payment equal to about one year of relief.
Here's what to know
According to The Independent, the British Industrial Competitiveness Scheme, or BICS, aims to help more than 10,000 manufacturers cope with high energy costs, including aerospace and defense companies and suppliers such as chemical producers.
If they qualify, firms in England, Scotland, and Wales would no longer pay levies that fund renewable energy and reserve generation, a change that could cut electricity bills by up to £40 per megawatt hour.
The move comes as industrial power costs in the U.K. remain among the highest in the G7, fueling worries about how well British manufacturers can compete internationally.
Those concerns have grown as the conflict between the U.S. and Iran drives up global oil and gas markets.
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Business Secretary Jonathan Reynolds said: "We will reindustrialise Britain by tackling one of the biggest pressures facing manufacturers and cutting their electricity bills."
The Department for Business said small enterprises make up about 98% of businesses across the eight targeted growth sectors.
What's being done?
BICS is not the only relief effort on offer. The government is also backing energy-intensive sectors through the British Industry Supercharger, which ministers said is reducing electricity bills by more than £400 million a year for industries including steel, glass, and ceramics.
Separate funding has also gone to individual sectors, with £350 million ($460 million) for chemicals and £120 million ($160 million) for ceramics.
Eligible manufacturers can apply for BICS until Nov. 30.
Reynolds said, "I'd urge every eligible manufacturer to get your application in for the British Industrial Competitiveness Scheme."
Additionally, Energy Secretary Miatta Fahnbulleh said: "We're cutting electricity bills for thousands of manufacturers to help firms invest, grow and create good jobs."
"Meanwhile, we are pressing ahead to break the link with fossil fuels, upgrade our network, speed up connections with Great British Grid and transition to clean power, which is the only way to bring down bills for good," Fahnbulleh added.
Where can I learn more?
Lowering power costs is part of a broader push to change how the U.K. and beyond use energy. The stories below look at everything from British household bill-cutting plans and home-efficiency upgrades to advanced solar panels and a major commercial solar deal in the Philippines.
• Across Great Britain, the use of more power this summer could help some households lower electricity bills.
• The U.K. is putting billions into helping thousands of households save hundreds of pounds a year.
• Under a U.K. plan, free home upgrades could cut energy bills for millions.
• In the Philippines, KCC signed a massive energy deal to expand solar power.
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