The UK government has opened a public consultation on the new British Industrial Competitiveness Scheme (BICS), aimed at lowering electricity costs for eligible manufacturers starting in 2027.
Under BICS, qualifying businesses - especially those in sectors like steel - would be exempted from certain electricity-related levies. The expected outcome is a reduction of electricity costs by £35-40 per MWh, potentially cutting up to 25 percent off industrial power bills for participating companies.
Tata Steel UK welcomes BICS as vital for steel’s green future
Tata Steel UK has issued a public statement expressing strong support for BICS. As one of the UK’s major steel producers, the company emphasized that the scheme could deliver critical support during its ongoing transition to low-carbon steelmaking.
Tom Evans, head of public affairs at Tata Steel UK, commented, “This scheme has the potential to provide vital support for UK manufacturing as we undertake the most significant transformation in UK steelmaking in decades.” He noted that the reduction in electricity costs could level the playing field on industrial energy costs, support long-term growth, and help sustain high-quality jobs across the country.
What’s next - consultation, eligibility and implementation
The public consultation on BICS is open until January 19, 2026. During this period, stakeholders, including manufacturers, energy providers and trade bodies, are invited to submit feedback on the proposed eligibility criteria and operational details.
Once finalized, the scheme is expected to take effect in April 2027, with ongoing reviews to ensure it remains effective and fair.