UK industrial businesses could secure up to 100% relief from key electricity policy costs under a new government support mechanism, according to a guide published by Jutton Energy.
The British Industrial Competitiveness Scheme (BICS) is designed to improve the global competitiveness of UK manufacturing by exempting eligible businesses from indirect electricity costs, including the Renewables Obligation, Feed-in Tariffs and Capacity Market charges from 2027.
According to Jutton Energy, the scheme targets both ‘frontier’ industries and ‘foundational’ sectors, (Frontier industries, which are part of the government’s 8 priority growth sectors (IS-8), and Foundational industries, which supply critical inputs to those frontier sectors), with eligibility determined by electricity intensity relative to gross value added (GVA).
Businesses exceeding defined thresholds could qualify for partial or full exemption, with those using more than 50% electricity in eligible processes potentially securing full relief.
The government is also expected to introduce a one-off ‘bridge payment’ in April 2027, effectively backdating support for the 2026/27 period and providing additional certainty for energy-intensive industries.
However, Jutton warns that timelines are tight. Following the close of consultation in May 2026, manufacturers will be required to submit detailed operational and energy data to the Department for Business and Trade later in the year, ahead of eligibility confirmation in early 2027.
The company is urging businesses to begin assessing your site-specific electricity intensity, identifying all relevant MPANs, ensuring SIC codes and electricity-to-GVA ratios align with the new thresholds to avoid missing out.
Jutton Energy, part of the same group as Hugo Energy and T Clarke, says its integrated approach combines procurement expertise, real-time data analytics and engineering capability to help businesses navigate the application process and maximise potential savings.
