The Government has announced a new British Industrial Competitiveness Scheme (BICS), aiming to cut electricity bills for manufacturers by up to 25%. The proposal recognises the disproportionate energy costs carried by UK industry and is expected to apply to “foundational sectors” and their supply chains, including metals production and downstream manufacturing.
For the aluminium sector, this development is particularly significant. Remelters, extruders, rolling mills, casters, forgers and processors all operate with high electricity demand and compete in a global market where energy pricing directly shapes competitiveness. Despite aluminium now being recognised as a strategic growth material under the Government’s Vision 2035 Critical Minerals Strategy, the UK remains at a disadvantage due to historically higher energy costs compared with Europe and other major producing nations.
The introduction of BICS provides new potential to alleviate these longstanding pressures. However, the impact of the scheme will depend heavily on how eligibility is defined, how metals are classified within growth sectors, and whether downstream manufacturers are included. To ensure this scheme delivers comparable benefits for aluminium and other metals producers, industry input during the consultation will be essential.
How ALFED Will Engage
ALFED will take an active role in the consultation by:
- analysing the proposed scheme to understand how eligibility and thresholds may affect UK aluminium companies
- working with members to collect evidence on electricity use, cost exposure and the competitiveness gap
- collaborating with Government, other metals organisations and industry advisors to present a unified sector view
- hosting a virtual roundtable to give members direct insight and shape ALFED’s consultation response
Our aim is to ensure that energy-intensive businesses, including downstream aluminium processors, are properly captured within the scheme. We will advocate for definitions that reflect the real energy burden on UK manufacturers and that support long-term investment and recycling growth across the domestic metals sector.
“The UK cannot build a competitive, low-carbon manufacturing future while energy-intensive sectors remain at a structural disadvantage. Fairer electricity pricing is fundamental for aluminium and other strategic metals. This scheme, if shaped correctly, can support the UK’s shift from being a high-cost exporter of raw materials to a country that retains value, creates skilled jobs and produces the low-carbon metals our economy needs.”
- Nadine Bloxsome, CEO, Aluminium Federation (ALFED)
This scheme marks an opportunity not only to reduce costs, but to underpin the UK’s broader ambition: a resilient, competitive metals sector at the heart of domestic industry and strategic growth.
Members wishing to contribute evidence or join the roundtable are encouraged to contact the ALFED team.
For further information, please visit the GOV.UK website at: Government acts on top business concern and cuts electricity bills for thousands of manufacturers by up to 25% – GOV.UK
