We set out the rising costs of NCC's and call for retailers to be eligible for participation in the scheme
We have responded to the Department for Business and Trade's consultation on the delivery of the BICS scheme, calling for retail to be included in energy cost support for electricity-intensive sectors.
- We call for eligibility for the scheme to be extended beyond the current narrow scope so energy-intensive retailers can benefit from relief on electricity policy costs.
- Our own survey shows that retailers’ electricity costs are set to rise from £2.72bn in 2025 to £3.16bn in 2026 — a 16% increase — despite electricity use remaining almost flat at 11,173 GWh to 11,181 GWh.
- Gas costs are also expected to increase, rising from £274.5m to £308.7m in 2026, even though gas consumption grows by just 1.4%.
- These cost increases are being driven not by higher usage, but by policy, network and infrastructure charges embedded in bills. Up to 65% of a retailer’s electricity bill is already made up of non-commodity costs, and this could rise to 75% by 2030.
We are urging Government to remove outdated policy costs such as RO and FiT from electricity bills and move them into general taxation. Because BICS support will not begin until 2027, we are also calling for interim support to help electricity-intensive retailers manage ongoing cost pressures now. Without action, rising energy costs will continue to squeeze investment, weaken competitiveness and add to inflationary pressure for consumers.
The response can be found below.
