The Fragmented Industrial Energy Support Schemes: Gas-Intensive Manufacturers Left Behind in 2026

If you work in UK manufacturing, you have probably seen the recent noise around industrial energy support.

There is movement, which is positive. But much of that movement is still focused on electricity.

For many manufacturers, that only solves part of the problem.

If your site is heavily reliant on gas for heat, process steam, drying, kilns, furnaces, or thermal production, the current policy landscape can feel fragmented. In simple terms, one side of the bill is getting attention while the other side is still putting pressure on margins.

At Tritility, we help businesses cut through the noise and look at what changes actually mean on-site. For gas-intensive manufacturers in 2026, the gap is hard to ignore.

Industrial energy support is moving, but mostly on electricity

Two developments are shaping the current discussion on industrial energy support.

The UK government has confirmed an uplift to the Network Charging Compensation (NCC) Scheme from 60% to 90%, taking effect from 1 April 2026 for eligible network charges under the British Industry Supercharger framework.

Alongside that, government launched consultation on the British Industrial Competitiveness Scheme (BICS), a scheme aimed at reducing industrial electricity costs by exempting eligible businesses from indirect costs linked to the Renewables Obligation, Feed-in Tariffs and Capacity Market.

That distinction matters.

BICS is an electricity-cost intervention. NCC compensation relief is also tied to electricity network charges. These measures may provide genuine value for eligible businesses, but they do not directly address gas commodity exposure or heat-related operating costs.

Why gas-intensive manufacturers still feel exposed

A lot of UK manufacturers are not purely electricity-intensive.

They are mixed-load operations, with significant energy spend tied to both power and heat. In some sectors, heat is the dominant issue.

This is where the policy gap starts to show. If the support structure improves electricity costs but leaves gas and heat costs largely untouched, some manufacturers will still be carrying the biggest part of the burden.

The Chemical Industries Association (CIA) has been explicit on this point, highlighting that natural gas and heat costs are central to competitiveness, viability and future investment for the UK chemical sector.

That concern is not limited to chemicals. The same pressure can apply across heat-intensive manufacturing environments, including food processing, glass, ceramics, paper, and other process-led operations.

What BICS and NCC can help with (and what they cannot)

There is no benefit in dismissing these schemes. They matter.

The real issue is understanding where they fit into your wider strategy.

What they can help with

• Reducing eligible electricity-related costs
• Improving cost competitiveness for qualifying sites
• Supporting planning where electricity is a major cost driver
• Creating headroom for investment in efficiency or process improvements

What they cannot solve on their own

• High gas commodity costs
• Thermal process dependence
• Site-specific operational inefficiencies
• Procurement risk created by poor contract timing or structure
• Long-term decarbonisation planning for heat-intensive operations

This is where businesses can get caught out. The headline says support is coming, but when you look at your actual bills, your biggest pressure point may still be there.

Why this matters for competitiveness and investment

Energy policy design is not just a technical issue. It affects investment decisions.

If industrial energy support is stronger for electricity-intensive firms but weaker for gas-intensive firms, you risk creating a two-speed environment across UK manufacturing. Some sites gain relief and improved confidence. Others continue to delay upgrades, scale back investment, or carry greater margin risk.

For many manufacturers, fuel switching or electrification is not something that happens quickly. It often requires major capex, infrastructure changes, process redesign, and long lead times.

That is why a joined-up strategy matters. Businesses need practical steps they can take now, while policy continues to evolve.

What manufacturers should do now in 2026

If you are a gas-intensive manufacturer, waiting for policy to become perfect is rarely the best move.

The stronger approach is to use any electricity support that may apply to your business while building a plan for the parts of your energy cost stack that remain exposed.

At Tritility, that usually starts with a full view of the picture.

1) Check eligibility properly

Do not assume you are in or out based on a headline. Review your site profile, energy usage, and business classification against current scheme criteria and consultations.

2) Review your gas procurement strategy

For gas-intensive sites, procurement can have a major impact on cost and risk. Contract structure, renewal timing, and risk appetite all matter.

3) Map where your costs are really coming from

Look beyond the total bill. Break down electricity, gas, peak usage, out-of-hours consumption, and process-related demand so decisions are based on real drivers.

4) Identify practical heat and process improvements

This is not always about a major capex project. Controls, maintenance, heat recovery, and process monitoring can all improve performance and reduce waste.

5) Build a phased roadmap

Separate what can be done now from what needs capital approval and what depends on future policy or infrastructure changes.

Tritility’s view

The direction of travel on industrial energy support in relation to electricity is important and welcome.

But for gas-intensive manufacturers, 2026 still looks fragmented.

Until industrial energy support better reflects the reality of both electricity and heat costs, many businesses will continue to face uneven pressure. If that is what your site is experiencing, you are not overreacting. It is a real commercial issue.

Tritility helps manufacturers make sense of the market, the policy changes, and the practical actions available now, with clear advice and no jargon.

FAQ: Fragmented Industrial Energy Support Schemes and Gas-Intensive Manufacturing

What is the British Industrial Competitiveness Scheme (BICS)?

BICS is a proposed UK government scheme designed to reduce electricity costs for eligible manufacturers by exempting them from certain indirect electricity policy costs, including the Renewables Obligation, Feed-in Tariffs and Capacity Market costs.

Is BICS support for electricity or gas?

BICS is focused on electricity, not gas. The consultation documents refer to electricity policy costs and do not set out relief for natural gas commodity costs.

What is the NCC Scheme uplift in 2026?

The government confirmed the NCC Scheme uplift from 60% to 90%, with the increased relief applying from 1 April 2026 for eligible network charges under the British Industry Supercharger framework.

Why are gas-intensive manufacturers concerned?

Many current industrial energy support measures are electricity-focused. Manufacturers with high heat demand may still face significant cost pressure because gas and thermal process costs remain a major part of their energy spend. The CIA has highlighted the importance of natural gas and heat costs to UK chemical sector competitiveness and investment.

Do these schemes help all manufacturers?

No. Eligibility criteria apply, and support is targeted rather than universal. Businesses need to review their specific profile to understand whether support is available and what it may cover.

What should gas-intensive manufacturers do if industrial energy support does not cover their biggest costs?

They should focus on a broader energy strategy, including procurement review, cost breakdown analysis, consumption visibility, and practical site efficiency improvements across both electricity and gas.

How can Tritility help manufacturers in 2026?

Tritility can help businesses review their energy cost structure, assess eligibility for industrial energy support schemes, improve procurement decisions, and build a practical strategy for cost control and long-term planning.