Applications are now open for the British Industrial Competitiveness Scheme (BICS), a new government initiative designed to reduce electricity costs for eligible manufacturing businesses across Great Britain.
With UK industrial electricity prices remaining among the highest in Europe, and non-commodity costs accounting for a significant proportion of business energy bills, the scheme aims to ease financial pressure on manufacturers and improve their competitiveness.
Eligible businesses could benefit from electricity cost reductions of up to £40 per megawatt hour (MWh), depending on their level of exemption and the applicable charges. However, businesses must act quickly, as the first application window closes on 30 November 2026.
What Is BICS?
The British Industrial Competitiveness Scheme is part of the government’s wider Industrial Strategy, introduced to help address the high electricity costs faced by UK manufacturers.
Over recent years, non-commodity electricity costs have increased considerably, driven by factors including electricity network investment, renewable energy support schemes and other industry obligations.
These charges can account for around 60% of a business’s electricity bill, depending on its contract and consumption. Rather than reducing the wholesale cost of electricity, BICS focuses on removing certain non-commodity charges for qualifying manufacturers.
Eligible businesses will receive exemptions from three charges:
- Renewables Obligation (RO): A scheme that supports renewable electricity generation.
- Feed-in Tariffs (FiT): Charges associated with supporting smaller-scale renewable electricity generation.
- Capacity Market (CM): A mechanism designed to ensure sufficient generation capacity can meet demand.
By removing these costs, the government aims to make electricity more affordable for manufacturers, helping them remain competitive and invest in future growth. The government estimates that more than 10,000 manufacturing businesses could benefit from the scheme.
Who Is Eligible for BICS?
BICS is aimed at manufacturers operating within industries considered important to the UK’s economic growth and industrial supply chains. These include two main categories:
- Automotive manufacturing
- Aerospace
- Clean energy technologies
- Defence
- Semiconductors
- Life sciences
- Chemicals
- Metals
- Advanced materials
- Composites
- Critical minerals
Although BICS shares some similarities with the existing Energy Intensive Industries (EII) support scheme, it has a wider scope, potentially allowing more manufacturers to benefit from electricity cost relief.
What Are the Eligibility Requirements?
To qualify for BICS, businesses must meet four main requirements:
1. Companies House registration: The business must be registered with Companies House.
2. Eligible SIC code: The business must operate within a qualifying manufacturing sector, identified through its Standard Industrial Classification (SIC) code.
3. Eligible HS code: The business must manufacture products included within the scheme’s qualifying Harmonised System (HS) codes.
4. Minimum electricity consumption: Each manufacturing site included in the application must use at least 33 MWh of grid-supplied electricity annually.
Importantly, eligibility is assessed on a site-by-site basis. This means a business operating several manufacturing facilities may find that some sites qualify while others do not.
Businesses carrying out a mixture of eligible and non-eligible activities may also qualify for partial exemptions, depending on how their electricity consumption is divided between activities. The government’s official guidance provides further details on the eligibility criteria and how exemptions are calculated.
How Can Businesses Check Their Eligibility?
The government has launched a free online eligibility checker to help manufacturers determine whether they are likely to qualify for BICS. Businesses can access the tool here: Check Your BICS Eligibility
The checker asks for basic information about the business and its manufacturing activities before providing an initial indication of eligibility. However, receiving a positive result does not guarantee approval. Businesses must still submit a full application with supporting evidence.
Before applying, it’s worth gathering relevant information, including Companies House details, electricity consumption records, meter information and evidence of eligible manufacturing activities.
For businesses with mixed-use sites or shared electricity meters, additional information may be required to demonstrate how much electricity is used for qualifying activities. If you need any guidance, our team are happy to advise you.
When Is the BICS Application Deadline?
Applications opened on 1 October 2026 and will close at 11:59pm on 30 November 2026. Businesses must submit their applications within this window to be considered for support.
The application process is free, although businesses will need to provide evidence demonstrating that they meet the scheme’s requirements. Applications can cover multiple manufacturing sites under the same legal entity, but each site’s eligibility must be demonstrated.
Successful applicants are expected to receive confirmation of their eligibility in early 2027. Businesses should avoid leaving their applications until the last minute, particularly where additional electricity consumption data or supporting evidence is needed.
When Will BICS Electricity Cost Relief Begin?
- April 2027: Exemptions from Renewables Obligation and Feed-in Tariff charges begin.
- October 2027: Capacity Market exemptions are introduced, providing further relief for eligible businesses.
The government has also announced plans for additional payments in 2027 to compensate qualifying businesses for support associated with the period beginning in April 2026.
Need Help Understanding BICS?
The British Industrial Competitiveness Scheme could provide valuable financial support to eligible manufacturers, particularly those facing high electricity consumption and rising non-commodity costs.
However, with applications closing on 30 November 2026, businesses have a limited window to assess their eligibility and prepare the necessary information.
At Renewable Energy Solutions, we can help businesses understand the scheme, see if they’re eligible, and identify the information needed to support their application.
Get in touch with our team today to discuss BICS and find out whether your business could benefit from reduced electricity costs.
