UK manufacturers can now apply for a new scheme intended to reduce their electricity costs by up to 25 per cent from April 2027.
The British Industrial Competitiveness Scheme (Bics) is designed to help more than 10,000 UK manufacturers facing elevated energy prices, including businesses in aerospace and defence, as well as suppliers like chemical producers.
Domestic industrial power prices have ranked among the highest in the G7, sparking concerns over the UK’s global competitiveness as the conflict between the US and Iran pushes up world oil and gas markets.
Bics will exempt qualifying firms in England, Scotland and Wales from levies that fund renewable energy and reserve generation, cutting bills by as much as £40 per megawatt hour.
Submissions open on Thursday, with prospective applicants requested to file by 30 November.
Business Secretary Jonathan Reynolds said: "We will reindustrialise Britain by tackling one of the biggest pressures facing manufacturers and cutting their electricity bills.
"I’d urge every eligible manufacturer to get your application in for the British Industrial Competitiveness Scheme.
"This support will help companies spend less on energy and more on growing their business, unlocking the growth we want to see across the country."
Small enterprises account for around 98% of businesses in the eight targeted growth sectors, according to the Department for Business.
Firms confirmed as eligible that apply this year will also receive a lump sum payment equivalent to roughly one year of relief under the scheme.
Ministers are also offering support to energy-heavy sectors such as steel, glass and ceramics via the British Industry Supercharger, which the Government says lowers power bills by more than £400 million a year.
Separately, the chemical and ceramics sectors have secured additional funding worth £350 million and £120 million respectively.
Energy Secretary Miatta Fahnbulleh said: "We’re cutting electricity bills for thousands of manufacturers to help firms invest, grow and create good jobs.
"Meanwhile, we are pressing ahead to break the link with fossil fuels, upgrade our network, speed up connections with Great British Grid and transition to clean power, which is the only way to bring down bills for good."
