British Industrial Competitiveness Scheme: What Should Energy-Intensive Businesses Be Doing Now?

For UK manufacturers, electricity costs have become an increasingly important issue. With British businesses facing higher electricity costs than many of their international competitors, the Government is introducing a new scheme aimed at helping energy-intensive manufacturing businesses reduce their electricity bills.

The British Industrial Competitiveness Scheme (BICS) is expected to provide eligible businesses with savings of around £35–£40 per MWh from 2027, by removing certain policy costs from their electricity bills. The scheme is designed to support manufacturing businesses operating in key growth sectors, as well as foundational industries that form an important part of their supply chains.

But while the potential savings are significant, businesses shouldn't wait until applications open to start preparing.

Who could be eligible?

BICS is aimed specifically at manufacturing businesses, and eligibility depends on a number of criteria.

Businesses must be registered with Companies House, operate within an eligible sector, manufacture eligible products in Great Britain and meet the scheme's electricity consumption requirements. The Government has now published the final list of eligible SIC and HS codes that will apply for the first year of the scheme.

Importantly, eligibility is assessed site by site, rather than simply at company level. Each manufacturing site must consume at least 33 MWh of grid-supplied electricity per year, with businesses required to provide evidence to support their application.

This means that simply operating in an eligible industry doesn't automatically guarantee that a business will qualify.

Applications open in October - but preparation should start now

The first application window opens on 1 October 2026 and closes at 11:59pm on 30 November 2026. Businesses are expected to receive confirmation of their eligibility in January 2027, with exemptions from the Renewables Obligation and Feed-in Tariffs beginning in April 2027 and the Capacity Market exemption following in October 2027.

That may sound like there is plenty of time, but the application process requires businesses to provide supporting information and evidence.

For example, businesses may need to provide details including their Companies House registration, manufacturing sites, products manufactured, relevant SIC and HS codes and electricity consumption data. The Government has already published evidence requirements as part of its application guidance.

For businesses operating multiple manufacturing sites or producing a range of products, checking this information now could save considerable time when the application window opens.

Getting BICS-ready

With the scheme now moving from consultation towards implementation, we have already started working with our clients to identify those who are likely to be eligible and begin collating the information they may need to support an application.

This includes reviewing the relevant business and site information, looking at electricity consumption and checking the products and activities against the Government's published eligibility criteria.

Taking this approach early means businesses can identify any gaps in their information and address them before applications open, rather than trying to pull everything together at short notice.

What could the scheme mean for your business?

For businesses that qualify, the potential reduction in electricity costs could be significant. The Government estimates that BICS could reduce costs by around £35–£40/MWh, with the scheme expected to support thousands of businesses across eligible manufacturing sectors.

However, businesses should also be aware that BICS is not the only form of support available. Some highly electricity-intensive businesses may instead qualify for the British Industry Supercharger, which provides a higher level of support. Businesses cannot receive the same exemptions through both schemes, so it is important to understand which scheme is most appropriate.

Don't leave it until October

The introduction of BICS represents a significant opportunity for eligible UK manufacturers, but the benefit will only be available to businesses that successfully meet the eligibility requirements and complete the application process.

With applications opening on 1 October, now is the time to check whether your business could qualify and start getting your information together.

If you're an energy-intensive manufacturer and would like to understand whether BICS could apply to your business, speak to our team. We're already reviewing our clients' eligibility and helping them prepare the information they may need ahead of the application window.