The Aluminium Federation (ALFED) has delivered a detailed response to the Government’s British Industrial Competitiveness Scheme (BICS) consultation, following substantial dialogue with aluminium producers, recyclers, processors, and fabricators during a focused roundtable with Leyton.
BICS aims to lower electricity policy costs for energy-intensive sectors. However, ALFED members articulated significant concerns that the current proposals inadequately represent the structure and energy profile of the aluminium value chain. ALFED’s submission emphasizes these issues and advocates for substantial revisions to provide equitable and effective support for the sector.
A primary concern raised by members was the need for more inclusive eligibility criteria. Businesses engaged in polishing, anodising, coating, cutting, bending, forging, casting, and other midchain processes pointed out that they are highly energy-intensive yet fall outside the scope of the SIC and HS codes proposed by the Government. ALFED’s response underscores the necessity of including these activities, as they are crucial components of the manufacturing chain.
Scrap processors and recyclers were also central to the discussion, with fears that their exclusion would jeopardize the UK’s capacity to retain aluminium scrap domestically. Members stressed that scrap preparation, sorting, and processing require considerable electricity and are vital for meeting UK circularity goals.
Consequently, ALFED has advocated for recyclers to be explicitly integrated within the eligibility framework. Additionally, members expressed significant concerns regarding the proposed electricity intensity test. Businesses reported longstanding challenges with the existing EII scheme, where high raw material costs distort electricity intensity ratios, often hindering eligibility even for genuinely energy-intensive operations.
ALFED recommends excluding raw material costs from the calculation and revising threshold levels to avert a repeat of the EII’s restrictive outcomes. If the current EII calculation method is retained for BICS, ALFED has emphasized the need for lowering threshold values or engaging in further consultations to ensure that legitimate energy-intensive aluminium operations are not unfairly excluded. Members also highlighted the importance of recognizing mixed-fuel sites, particularly melters, which currently rely heavily on gas due to barriers in grid availability and connection costs, especially in relation to sustainable packaging
Another critical issue discussed was the proposed implementation date of April 2027. Members unanimously concurred that this timeline is overly delayed, especially given the ongoing high electricity prices and the urgent need for support. ALFED has urged the Government to expedite the timeline and consider mechanisms for limited backdating once scheme parameters are confirmed.
Nadine Bloxsome, Chief Executive of ALFED, stated: “BICS has the potential to be a transformative support mechanism for energy-intensive manufacturers, but only if it is designed to reflect the real-world complexity of the aluminium sector. We have urged the Government to broaden eligibility, refine the electricity intensity test, accelerate the implementation timeline and ensure the scheme supports the full value chain, including recyclers and service-based manufacturers. ALFED will continue working closely with DBT to ensure aluminium is fully represented as the scheme develops.”
Additionally, ALFED encourages all businesses within the aluminium value chain to participate in the consultation process, submitting their responses by the deadline of January 19, 2026. The federation will keep members informed as discussions with the Government evolve.
