UK launches scheme to slash manufacturers' electricity costs by up to 25%

From April 2027, more than 10,000 UK manufacturers can apply for the British Industrial Competitiveness Scheme, which exempts them from levies that fund renewable and reserve power, cutting electricity costs by up to 25% and saving roughly £40 per megawatt hour. The programme covers firms in England, Scotland and Wales, with applications opening on Thursday and a deadline of 30 November. Business Secretary Jonathan Reynolds highlighted the scheme as a key step to reindustrialise Britain and promised a lump-sum payment equivalent to about a year of relief for those confirmed eligible this year.

Small firms, which make up about 98% of the eight targeted growth sectors, stand to benefit alongside larger aerospace, defence and chemical producers. Parallel measures include the British Industry Supercharger, aimed at steel, glass and ceramics, and dedicated funding of £350 million for chemicals and £120 million for ceramics. Energy Secretary Miatta Fahnbulleh said the initiative will help firms invest, grow and create jobs while the government works to decouple from fossil fuels and upgrade the power network.