Britain’s Excess Renewable Energy: Turning a Surplus into Opportunity
April 21, 2026
GLEG UK Energy Market Update 27-04-26…
April 27, 2026
UK manufacturers are currently facing some of the highest electricity prices in Europe. With added levies, network charges, and ongoing market uncertainty, this has created a real challenge for competitiveness, investment, and growth.
What is BICS?
Launched in June 2025, the British Industrial Competitiveness Scheme (BICS) is the Government’s response. It aims to reduce energy costs by removing certain levy charges from electricity bills for eligible manufacturers — specifically the Renewables Obligation (RO), Feed-in Tariffs (FIT), and Capacity Market (CM).
The scheme is set to run until 2035 and could provide savings of around £35–£40 per MWh for over 10,000 businesses.
What’s new?
On 16 April 2026, the Government confirmed the eligibility criteria and opened a second consultation (closing 14 May 2026).
Who qualifies?
BICS is open to manufacturers of all sizes and focuses on two broad groups:
• Frontier industries (e.g. Advanced Manufacturing, Clean Energy, Life Sciences, Defence, Digital)
• Foundational industries (those supplying key inputs to the above sectors)
Eligibility is based on:
- Sector electricity intensity (not individual business usage)
- Operating under qualifying SIC codes
- Producing eligible goods (based on HS codes)
Support is then applied at a site level:
- <25% eligible usage → no support
- 25–50% → 50% exemption
- 50%+ → 100% exemption
Key dates to know
- Oct 2026 – Applications open
- Jan 2027 – Eligibility confirmed
- Apr–Oct 2027 – Savings begin appearing on bills (with backdated support)
Why it matters…
BICS is a strong signal that UK manufacturing remains a priority. By reducing energy costs, it helps businesses stay competitive, invest with confidence, and plan for long-term growth.
At GLEG, we’re already supporting clients to understand what this means in practice — from eligibility checks to building smarter energy strategies.
If you’re unsure whether your business qualifies, now is the time to start preparing.
📩 Get in touch with us at hello@gleg.co.uk to discuss how BICS could impact your business.
