Draft Renewables Obligation and Electricity Capacity (Amendment) (British Industrial Competitiveness Scheme Excluded Electricity) Regulations 2026

Peter Fortune Excerpts

Tuesday 27th October 2026 General Committees

[Blair McDougall]

I thank Members for taking part in this debate. I am grateful for the constructive tone, particularly from the Opposition. As the hon. Member for Hinckley and Bosworth said, we sat around the table with some superb advanced manufacturers from the automotive sector in his constituency. They deserve not just our praise but our action, which is exactly what we are attempting to achieve with these regulations.

[Peter Fortune (Bromley and Biggin Hill) (Con)]

It has just occurred to me that the cut-off date is 1 December. If firms miss that, will they have to wait a whole year to reapply, or is there some sort of mechanism to support them?

[Blair McDougall]

The hon. Gentleman is getting slightly ahead of what I was about to say, which is that we are racing to make sure that as many companies as possible make that deadline. Of course, we will keep things under review as we want the maximum number of companies to be eligible.

The scheme has been described as complex, and certainly its design is complex. Although it is complex for my civil service team, we are hopeful that, through the work we have done with the online eligibility checker, it will not be complex for businesses as they apply. I urge Members across the House to reach out to their local manufacturers to make sure they apply for this support.

There is an understandable consensus urging us to go further, which is completely fair. Energy prices are one of the country’s key competitive disadvantages. When BICS was first announced, we envisaged that around 6,000 businesses would be eligible, and that has now been extended to 10,000 businesses. With its design, we have already tried to go further. Both the Secretary of State for Business, Innovation, Science and Trade and the Secretary of State for Energy Security and Net Zero have made it clear that they have wider ambitions.

It is perhaps a little late—I do not know whether the Budget has been sent to the printers—but I can assure my hon. Friend the Member for Tamworth that both my Departments will continue to make that case to the Treasury, but I would say that drawing a greater amount on the Exchequer obviously has an opportunity cost for other industrial support we can give. We have to be careful to strike a balance.

Obviously, this is not the only intervention to assist with energy costs. We have the supercharger for energy-intensive industries, and the ceramics fund is specifically aimed at helping that sector, which is under stress with energy prices, to decarbonise, to electrify and to innovate. Ultimately, the long-term future for competitive energy prices in this country, after the experience of two fossil fuel shocks in five years, is to move towards cleaner, cheaper, more reliable power that we control.

I am grateful to Members for their contributions to this debate and for their support for these regulations. BICS is intended to challenge the long-term competitiveness disadvantages, and it will benefit over 10,000 manufacturing businesses in high-growth and strategic sectors across the country. We will review the scheme in 2030 to assess its continued effectiveness in supporting the competitiveness of manufacturing businesses. I commend the regulations to the Committee.

Question put and agreed to.