Auto Amazon Links: No products found. Blocked by captcha.
The government has announced an expansion of its energy support scheme originally introduced in 2025, promising additional assistance to more businesses with their energy bills starting from April next year. This extension will benefit approximately 10,000 energy-intensive manufacturers, including those in the steel and pharmaceutical sectors, potentially reducing their energy costs by up to 25%. Initially, the scheme was designed to aid around 7,000 firms.
This decision comes amid rising oil and gas prices, which have surged recently although they have not reached the extreme levels seen after Russia’s invasion of Ukraine. The government emphasized that widening the British Industrial Competitiveness Scheme (BICS), established last year, aims to strengthen the country’s economic security and improve competitiveness. Business Secretary Peter Kyle stated, “When global instability puts businesses under pressure we’ll always do what’s needed to support them and ensure Britain’s resilience.”
Support under the expanded scheme will begin in April 2027. Eligible companies will be exempt from certain electricity charges tied to the net zero transition, which correspond to roughly £35–£40 per megawatt-hour. Additionally, qualifying firms will receive a one-time payment to cover support retroactively from April 2026 if BICS had been implemented then. Funding for the scheme will come from adjustments in the energy system and government expenditures, with no expected rise in domestic energy bills.
Despite the government’s announcement, some criticism remains. The Conservative Party highlighted that sectors such as pubs, restaurants, farmers, and retailers—already struggling significantly—are excluded from the scheme. Shadow Energy Secretary Claire Coutinho argued that the plan benefits only 0.2% of businesses and suggested that more effective support would involve reducing the cost of living and eliminating green levies to lower electricity prices more broadly. Meanwhile, business leaders welcomed the extension; Rain Newton-Smith, chief executive of the Confederation of British Industry, called it “a significant step” that shows the government is listening to industry concerns about high energy costs impacting UK competitiveness
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.