British Industrial Competitiveness Scheme (BICS): What Manufacturers Need to Know

The Government has released further details of the British Industrial Competitiveness Scheme (BICS), providing greater clarity on how eligible manufacturers can benefit from lower electricity costs.

For businesses that qualify, the scheme could significantly reduce energy costs by removing the indirect costs of the Renewables Obligation (RO), Feed-in Tariffs (FIT) and the Capacity Market (CM). Government estimates suggest this support could be worth £35-£40 per MWh, with some manufacturers seeing electricity bills reduce by as much as 25%.

With the first application window now confirmed, businesses should start preparing well in advance.

Key Dates

The Government has confirmed that applications for the first year of the scheme will open between 1 October and 30 November 2026, with successful applicants expected to be notified by 8 January 2027.

The electricity bill exemptions will begin from April 2027 for the Renewables Obligation and Feed-in Tariffs, followed by the Capacity Market exemption from October 2027.

Eligible businesses will also receive a one-off payment at launch to reflect the support they would have received had the scheme started in April 2026.

Who Could Be Eligible?

Following the latest consultation, the Government has expanded the list of qualifying sectors by adding additional SIC and HS codes.

To qualify, businesses must generally:

• Be registered with Companies House
• Import more than 33MWh of electricity from the grid each year
• Operate within an eligible sector
• Manufacture at least one qualifying product

Successful applicants will receive eligibility for five years, representing a significant improvement on the original two-year proposal. Businesses will, however, be subject to a review after two years and will need to submit an annual declaration confirming their circumstances remain unchanged.

Why Preparation Matters

Although eligibility is assessed at business level, the exemption applied is calculated on a site-by-site basis.

For organisations operating across multiple locations or with several electricity suppliers, gathering the required information can take time. Businesses should begin reviewing:

• Electricity suppliers and MPAN details
• Historical energy consumption and invoices
• Manufacturing activities
• Eligible SIC and HS codes
• Supporting operational documentation
• Evidence demonstrating qualifying manufacturing activity

Preparing this information now will help ensure applications can be submitted quickly once the application window opens.

How GLEG Can Help

BICS has the potential to deliver substantial savings for eligible manufacturers, but understanding whether your business qualifies is the first step.

At GLEG, we help businesses assess their eligibility, review their energy portfolio, organise the required documentation and identify any gaps before the application process begins.

By preparing early, businesses can approach the application window with confidence and reduce the risk of missing out on valuable financial support.

If you’d like to understand how the British Industrial Competitiveness Scheme could affect your organisation, contact the GLEG team at hello@gleg.co.uk. We’d be happy to help you prepare.