BICS explained: what the British Industrial Competitiveness Scheme means for businesses

Energy costs remain a significant challenge for many UK businesses, particularly manufacturers and other electricity-intensive sectors. That's why the Government's new British Industrial Competitiveness Scheme (BICS) is attracting attention. Designed to improve the competitiveness of UK industry, the scheme could help eligible businesses reduce electricity costs from 2027 onwards.  

Here's what businesses need to know, who could benefit and where to find further information. 

What is the British Industrial Competitiveness Scheme (BICS)? 

The British Industrial Competitiveness Scheme (BICS) is a government scheme designed to reduce electricity costs for eligible UK manufacturers. It forms part of the Government's wider industrial strategy and aims to support businesses operating in key growth sectors. 

From 2027, eligible businesses could see electricity costs reduced by up to £40 per megawatt hour (MWh) through exemptions from several policy-related electricity charges.  

These include: 

• The Renewables Obligation 
• The Capacity Market 
• The Feed-in Tariff 

For eligible businesses, this could translate into a substantial reduction in operating costs.

Who can apply? 

Businesses must meet several eligibility requirements to qualify for BICS. To be eligible, a business must: 

1. Be registered with Companies House.  
2. Operate within an eligible sector identified through Standard Industrial Classification (SIC) codes. 
3. Manufacture an eligible product identified through Harmonised System (HS) codes. 
4. Meet the minimum electricity usage requirements set by the scheme. Each manufacturing site must use at least 33 MWh of grid-supplied electricity each year. As part of the application, you'll need to provide electricity usage data covering the most recent six consecutive months available within the last 12 months. 

The scheme is primarily aimed at: 

• Manufacturing businesses 
• Energy-intensive industries 
• Businesses operating within the Government's growth sectors ("IS-8") 
• Foundational manufacturers that support these sectors

How much could businesses save? 

The Government has stated that eligible businesses could see electricity costs reduced by up to £40/MWh. 

While actual savings will vary depending on energy usage and eligibility, lower electricity costs could help businesses: 

• Improve competitiveness 
• Invest in growth 
• Offset rising operating costs 
• Strengthen long-term resilience 

How can you check if you're eligible? 

The Department for Business, Innovation, Science and Trade has created an online eligibility checker to help businesses assess whether they are likely to qualify. 

Useful links: 

https://check-eligibility-for-bics.service.gov.uk/check  

https://www.gov.uk/government/publications/eligibility-for-the-british-industrial-competitiveness-scheme  

If you're unsure whether your SIC code or manufacturing activities qualify, the eligibility guidance provides a full breakdown of eligible sectors and products.

How do businesses apply? 

Applications for BICS opened on 1st October 2026 and close on 30th November 2026.  

Businesses can apply directly through the Government's application portal: 

Apply for BICS 

Before applying, it's worth reviewing the eligibility criteria and gathering any supporting information relating to your industry classification, manufacturing activities and energy usage. 

What if your business doesn't qualify? 

While BICS represents significant support for eligible manufacturers, many small businesses won't qualify directly. 

That doesn't mean there aren't opportunities to manage costs. 

Businesses can still benefit from: 

• Reviewing their energy contract before renewal. 
• Understanding where and when they're using energy. 
• Improving energy efficiency across operations. 
• Investing in more efficient equipment and technology. 
• Exploring energy products that better align with their business needs. 

For support, you may find these resources useful: 

• Business energy solutions  
• Energy saving tips for businesses  
• Switching business energy suppliers  

What this means for businesses 

The introduction of BICS is one of the most significant business energy support measures announced in recent years. For eligible manufacturers, it could provide meaningful reductions in electricity costs and additional confidence to invest in growth. 

However, it's important to remember that eligibility is limited. Most small businesses won't automatically qualify, which makes understanding your energy usage, improving efficiency and staying informed just as important.