British Industrial Competitiveness Scheme explained
Could your manufacturing business save up to 25% on its electricity bills?
The British Industrial Competitiveness Scheme (BICS) is a new government initiative designed to cut energy costs for around 10,000 eligible British businesses.
With applications now open until 30 November 2026, here’s what you need to know about the scheme, how much you could save and whether your business qualifies.
What is BICS and who is eligible?
BICS is a new government energy support scheme that will reduce electricity costs for eligible manufacturers, supporting investment and protecting jobs where electricity costs significantly affect international competitiveness. It’s targeted at eight key growth sectors, including advanced manufacturing, aerospace, chemicals, and clean energy supply chains.
The government estimates around 10,000 businesses across Great Britain could be eligible. This isn’t limited to the largest organisations – SMEs qualify too, provided they meet the criteria.
To qualify, businesses must:
- Operate in one of the scheme’s eight target sectors – either as a manufacturing ‘frontier’ business, or as a foundational business central to the supply chain, and manufacture eligible products
- Meet the qualifying electricity-intensity threshold, assessed at sector level rather than business level
- Have annual electricity consumption above 33 MWh, with over 25% of site use relating to eligible manufacturing activity
- Be registered with Companies House
How do I apply for BICS support?
If you believe your business is eligible for BICS support, you can apply directly through the government’s online application service. Applications opened on 1 October 2026 and will close on 30 November 2026.
You’ll need details of your manufacturing sites and electricity consumption, along with supporting evidence. You can also use the government’s eligibility checker before applying.
How does BICS work, and how much could businesses save?
BICS exempts eligible businesses from paying the following levies, currently recovered through electricity bills:
- The Renewables Obligation (RO)
- Feed-in Tariffs (FIT)
- The Capacity Market (CM)
Government estimates suggest this could reduce eligible businesses’ electricity costs by around £35–£40/MWh – bill savings of up to 25% for some manufacturers. The RO and FIT exemptions take effect from April 2027, with the Capacity Market exemption following from October 2027.
Eligible businesses may also be entitled to a one-off payment reflecting the support they’d have received had the scheme been running since April 2026. Details of how and when this will be delivered are still to be confirmed.
📊 Could bills come down further?
BICS could cut costs by up to £40/MWh for eligible manufacturers — but it only reaches a subset of UK businesses. In our report, Rewiring the Market: How to Tackle the Hidden Causes of High Energy Bills, we set out reforms that could cut electricity costs by 31% (£73/MWh) for all non-domestic users, not just BICS-eligible sectors.
Read the report →
How will the BICS scheme be funded?
The government says BICS won’t directly increase bills for other consumers. Instead, the costs removed from eligible manufacturers’ bills are expected to be offset through a mix of: changes elsewhere in the energy system (such as amended inflation-indexation for the RO and FIT schemes); removal of Carbon Price Support from April 2028; and Exchequer funding.
Should the government go further to bring down energy bills?
BICS is one of the most significant interventions yet in tackling the UK’s electricity cost problem. But it’s targeted relief for one part of the economy — it doesn’t address why UK electricity prices are among the highest in Europe for any business, BICS-eligible or not.
That’s the argument at the heart of our report, Rewiring the Market: schemes like BICS are a welcome start, but lasting competitiveness gains require government to tackle the underlying causes of high costs, not just relieve the symptoms for a subset of industries. Read our full recommendations here.
With guidance and an eligibility checker now available, and applications open until 30 November, now is the time for businesses in frontier and foundational sectors to check whether they meet the thresholds and apply for support.
BICS FAQs
1 October 2026: applications open for April 2027 exemptions
30 November 2026: applications close
1 October 2026 – 8 January 2027: government assesses applications; eligible businesses confirmed in early 2027
April 2027: RO and FIT exemptions begin
October 2027: Capacity Market exemption begins
You’ll need your Companies House registration number, details of your manufacturing sites, electricity meter numbers (MPANs), and six months of electricity consumption and manufacturing evidence. You’ll also need a GOV.UK One Login account to apply online.
Yes. Businesses can submit one application covering multiple manufacturing sites, provided each site meets the relevant eligibility requirements. You’ll need to provide supporting evidence for each site.
The government expects to confirm eligibility decisions in early 2027. Successful applicants will receive confirmation of their exemption by email, with savings on RO and FIT costs beginning in April 2027.
No. Businesses apply directly to the government, rather than through their electricity supplier. However, you’ll need to provide details of your electricity supply as part of your application. If you’re successful, your supplier will be involved in applying the relevant exemptions to your bills.
