Energy Intensive Industries' ability to influence HMG's policy within the 'British Industrial Competitiveness Scheme

The most effective way for Energy Intensive Industries (Ells) to influence the British Industrial Competitiveness Scheme (BICS) is by actively engaging in the government's consultation and certification processes, demonstrating their electricity intensity and trade exposure, and coordinating through industry associations to present unified evidence of competitiveness risks.

This ensures eligibility for exemptions from levies and network charges and maximises the chance of securing relief.

Key Mechanisms of Influence

1. Certification & Eligibility

Ells must obtain an Ell certificate from the Department for Energy Security and Net Zero (DESNZ), proving that electricity costs are a significant share of gross value added and that the sector is trade-exposed.
Without certification, businesses cannot access exemptions from Contracts for Difference (CID), Renewables Obligation (RO), Feed-in Tariff (FiT), or Capacity Market charges.

2. Participation in Consultations

The British Industrial Competitiveness Scheme (BICS), announced in 2025 and set to take effect from 2027, is being shaped through government consultations and advisory councils.
Ells can influence scheme design by submitting evidence during consultations, highlighting international competitiveness risks, and lobbying for broader eligibility criteria.

3. Industry Associations & Collective Action

Trade bodies (e.g., UK Steel, Chemical Industries Association, British Glass) play a critical role in aggregating sector data and lobbying for relief.
Collective submissions carry more weight than individual company lobbying,especially when demonstrating sector-wide exposure to high energy costs.

4. Evidence of Competitiveness Risk

Ells should provide quantitative data showing:
- Share of electricity costs in production.
- Comparative energy prices vs EU competitors.
- Risk of carbon leakage (production moving abroad).
This evidence strengthens the case for exemptions and compensation mechanisms.

5. Engagement with MPs and Local Authorities

Ells located in industrial clusters (steel in Yorkshire, chemicals in Teesside, cement in Derbyshire) can leverage regional MPs and devolved authorities to amplify their case for relief

Opportunities and Challenges

Opportunities

Exemptions from levies and partial compensation for network charges can reduce industrial electricity bills by up to 25%.
Relief narrows the UK-EU price gap, improving competitiveness for certified Ells.
Participation in cluster programmes (hydrogen, CCS) can align firms with broader industrial strategy support.

Challenges

SMEs and non-certified firms remain excluded, widening the gap between eligible and non-eligible businesses.
Reliefs are funded by levies on non-Ells, potentially creating tension between sectors.
Certification requires detailed data submission and compliance monitoring, which can be resource-intensive.

Practical Steps for Ells

Secure Ell certification by preparing robust evidence of electricity intensity and trade exposure.
Engage in consultations for BICS and related schemes, submitting sector-specific data.
Work through trade associations to present unified lobbying positions.
Highlight international competitiveness risks to policymakers, especially carbon leakage.
Align with industrial clusters and regional authorities to strengthen political support.

Key Takeaway:

Ells can most effectively influence the British Industrial Competitiveness Scheme by combining formal certification with coordinated lobbying and evidence-based consultation input. Those who succeed will gain exemptions from levies and network charges, significantly reducing costs and narrowing the competitiveness gap with Europe.

Sources: GOV.UK press release on industrial electricity bill reductions, DESNZ guidance on Ell certification, Enexus Energy overview of BICS, Energy Advice Hub guide, EiC Partnership details on levy exemptions.