British Industrial Competitiveness Scheme
(asked on 23rd October 2026) - View Source
Question to the Department for Business, Innovation, Science and Trade:
To ask the Secretary of State for Business, Innovation, Science and Trade, what assessment he has made of the impact of BICS on reducing carbon leakage risk in energy-intensive manufacturing sectors.
Answered by
Blair McDougall
Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade) (Jointly with the Department for Energy Security and Net Zero)
The Government has considered the interaction between the British Industrial Competitiveness Scheme (BICS) and the UK Emissions Trading Scheme as part of the wider framework supporting industrial competitiveness and decarbonisation.
BICS will reduce electricity costs for eligible manufacturers through exemptions from the indirect costs of the Renewables Obligation, Feed-in Tariffs and Capacity Market. The aim of BICS is to support the competitiveness of British businesses in key manufacturing sectors identified in the Industrial Strategy. Although not objectives of the scheme, in some cases narrowing the electricity cost gap with international competitors may also help to reduce the risk of indirect carbon leakage or support electrification.