The Aluminium Federation (ALFED) has submitted a comprehensive response to the Government’s British Industrial Competitiveness Scheme (BICS) consultation, following extensive engagement with aluminium producers, recyclers, processors and fabricators during a dedicated roundtable event held in partnership with Leyton.
BICS aims to reduce electricity policy costs for energy-intensive industries, but ALFED members expressed strong concerns that the current proposals do not yet reflect the structure or energy profile of the aluminium value chain. ALFED’s submission highlights these issues and calls for significant revisions to ensure fair and effective support for the sector.
A key priority raised by members was the need for broader eligibility criteria. Businesses operating in polishing, anodising, coating, cutting, bending, forging, casting and other midchain processes explained that they are highly energy-intensive yet are not currently captured by the SIC and HS codes proposed by Government. ALFED’s response emphasises that these activities are essential steps within the manufacturing chain and must be included if BICS is to reflect the realities of aluminium production.
Scrap processors and recyclers also featured prominently in the discussion, with concerns that excluding these businesses would undermine the UK’s ability to retain aluminium scrap domestically. Members noted that scrap preparation, sorting and processing require significant electricity and are central to delivering UK circularity objectives.
ALFED has therefore called for recyclers to be explicitly included within the eligibility framework. Members also raised substantial concerns about the proposed electricity intensity test. Businesses described longstanding difficulties with the existing EII scheme, where high raw material costs distort electricity intensity ratios and prevent eligibility even among genuinely energy-intensive operations.
ALFED has recommended that raw material costs be excluded from the calculation and that threshold levels be reviewed to prevent a repeat of the EII’s restrictive outcomes. If the current EII calculation method is retained for BICS, ALFED has additionally called for the threshold values to be lowered, or subject to further consultation, to ensure that legitimate energy-intensive aluminium operations are not unfairly excluded. Members also stressed the importance of recognising mixed-fuel sites, particularly melters, which currently rely heavily on gas because grid availability and connection costs present major barriers to electrification.
Another major theme was the proposed April 2027 implementation date. Members unanimously agreed that this is too late, given prolonged high electricity prices and the need for support now. ALFED has urged Government to accelerate the timeline and consider mechanisms for limited backdating once scheme parameters are confirmed.
Nadine Bloxsome, Chief Executive of ALFED, said: “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.”
ALFED is encouraging all businesses across the aluminium value chain to submit their own consultation responses before the 19 January 2026 deadline. The federation will continue to update members as discussions with Government progress.