The British Industrial Competitiveness Scheme and industrial electricity costs

Status: ProposedThe proposal would remove certain policy costs from the electricity bills of qualifying businesses, reducing their electricity costs by up to a quarter, from 2027.

It is a government response setting out an intended approach. It is not law, the detail is not final, and eligibility has not been confirmed for any individual business.

Status: ProposedEligibility would be assessed at sector level rather than business by business, using electricity intensity: electricity consumption divided by gross value added.

The indicated thresholds are above 0.9 per cent for frontier industries and above 2.7 per cent for foundational industries, with sectors identified by their industrial classification code.

The consequence of a sector-level test is worth understanding. A highly electricity-intensive business in a sector that does not qualify would be out, and a less intensive business in a qualifying sector would be in. Your own consumption does not decide it.

Status: LawExisting support, the British Industry Supercharger, already relieves the most energy-intensive industries of a substantial share of certain policy costs, subject to holding valid certification.

The proposal would extend relief to a wider set of businesses rather than replace what exists. A business already holding certification under the current arrangements should establish how the two would interact rather than assuming the new proposal supersedes them.

• Establish your industrial classification code and whether your sector appears in the indicated scope. That is the determining factor, not your own intensity.
• If you already hold certification under existing schemes, confirm it is current. Relief that lapses is relief lost.
• Do not build a budget on relief that has not been legislated. Model it as an upside rather than a baseline.

We will tell you what is confirmed and what is not, and we will not describe a proposal as a saving you can bank.