The Chemical Industries Association (CIA) has welcomed the announcement that electricity bills will be cut by up to 25% for more than 10,000 manufacturers under the expanded British Industrial Competitiveness Scheme (BICS), with support due to take effect from April 2027.

The expansion of BICS, including a 40% increase in eligible businesses and a one‑off additional payment in 2027, represents a significant step towards easing the cost pressures facing energy‑intensive industries. For the UK chemical sector, high electricity prices continue to be one of the most persistent barriers to competitiveness, investment and long‑term resilience.

The CIA says that while today’s announcement provides welcome relief for those that qualify, the scale of the challenge facing energy‑intensive manufacturers remains substantial. Many firms continue to operate at a disadvantage compared to international competitors, and the Association continues to highlight the need for a more competitive and stable energy framework to underpin future growth.

 Steve Elliott, Chief Executive of the Chemical Industries Association, said:

“The upcoming relief is welcome for those that qualify, but with so many caveats attached to the relief, we must go further and faster to fix the longstanding structural changes embedded in our energy policy on both power and gas. The removal of Carbon Price Support is welcome but is only from 2028, and there is a concern that increasing network costs will outstrip the benefits of this reduction.”

The CIA will continue to work with Government to ensure that the UK’s energy‑intensive industries have the competitive conditions needed to invest, grow and contribute to a resilient, modern industrial economy.

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