Overview
- Chancellor Rachel Reeves, speaking in Washington on Wednesday during IMF meetings, confirmed the British Industrial Competitiveness Scheme will add about 3,000 sites.
- From April 2027, site‑by‑site exemptions will remove costs from the Renewables Obligation and Feed‑in Tariffs, with Capacity Market costs lifted in October 2027, cutting bills by up to 25% or about £35–£40 per MWh.
- A one‑off payment in 2027 will cover support that would have applied from April 2026 for sectors such as automotive, steel, aerospace and pharmaceuticals.
- The package is expected to cost up to £600 million a year and the government says funding will come from energy‑system changes plus the Exchequer, with no increase to other customers’ bills.
- A second consultation runs to 14 May 2026, with legislation due by Autumn 2026 and full funding details set to be published alongside the law.