Business Energy Broker
Business electricity support
British Industrial Competitiveness Scheme
What manufacturers need to know
In April 2026, the UK government announced the final design of the British Industrial Competitiveness Scheme (BICS), which will provide electricity bill relief to more than 10,000 manufacturing businesses. From April 2027, eligible firms could see electricity bills reduced by up to 25%.
This guide explains who may qualify, how the scheme will work, and what businesses should do before applications open.
At a glance
Who it supports
BICS is designed to reduce electricity costs for eligible UK manufacturers and certain energy intensive businesses in their supply chain.
What it covers
Eligible businesses may receive relief from indirect costs linked to the Renewables Obligation, Feed-in Tariffs and Capacity Market.
Application window
Applications are expected to open on 1 October 2026 and close on 30 November 2026.
When relief begins
RO and FIT relief is expected to begin in April 2027, with Capacity Market relief following in October 2027.
What is BICS?
BICS is a new government support mechanism designed to reduce electricity costs for eligible UK manufacturers and other energy intensive businesses in their supply chain. It works by removing certain policy-related costs from electricity bills, including costs linked to the Renewables Obligation, Feed-in Tariffs and Capacity Market.
The government estimates this support could be worth around £35–£40 per MWh, with total support reaching as much as £600 million per year. The scheme was first announced in June 2025 as part of the government’s Modern Industrial Strategy and has since been refined through consultation.
Who is eligible?
In the original government proposals, around 7,000 businesses were in scope. The final design expands eligibility to more than 10,000 firms.
To qualify, a business must operate in an eligible sector and manufacture at least one eligible product. These sectors are energy intensive and linked to industries the government has earmarked for growth, such as clean energy, advanced manufacturing, digital technologies, defence and life sciences. A full list of eligible sectors and products is available from the government.
Eligible businesses must also be registered with Companies House and import more than 33MWh of electricity from the grid each year. Businesses supplied through private network arrangements may also qualify where levy costs can be evidenced.
Does BICS apply to SMEs?
BICS is not reserved for major corporates. Both SMEs and larger businesses may be eligible, provided they meet the qualifying criteria.
Support is based on the nature of the activity being carried out and the energy used at each site, rather than the overall size of the business. That means a specialist manufacturer with a single qualifying facility could benefit, while a much larger organisation outside scope may not.
Is every manufacturer automatically eligible?
No. BICS is targeted support, not a universal discount for every manufacturer in the UK. Eligibility depends on whether a business operates in an approved sector, manufactures eligible products and can evidence qualifying energy use.
If a business wishes to claim support for a manufacturing site, it will need to provide details of all import Metering Point Administration Numbers (MPANs) related to the site, together with evidence of the proportion of electricity consumed for eligible production processes.
How will support be calculated?
BICS will operate on a site-by-site basis, rather than applying one decision across an entire business group. This means two facilities under the same ownership could receive different outcomes depending on their operations and energy profile.
Support will be calculated by reference to the proportion of electricity used for eligible manufacturing activity at each site:
Less than 25%
Of electricity usage relates to eligible manufacturing.
No exemption
25% to less than 50%
Of electricity usage relates to eligible manufacturing.
50% exemption
50% or more
Of electricity usage relates to eligible manufacturing.
100% exemption
Exemption percentages refer to the covered policy costs, rather than the whole electricity bill.
When does BICS come into effect?
BICS comes into effect from April 2027. The government has also confirmed a one-off additional payment in 2027 to cover support businesses would have received had the scheme been in place from April 2026.
Expected delivery timeline
1 October 2026
Applications expected to open.
30 November 2026
Application window expected to close.
Autumn 2026
Legislation expected.
8 January 2027
Assessment period ends.
April 2027
Renewables Obligation and Feed-in Tariffs relief begins.
October 2027
Capacity Market relief begins.
How long will eligibility last?
One significant change following consultation is the length of eligibility. Originally, businesses were expected to reapply every two years. The government has now extended this to five years, providing greater certainty for manufacturers planning investment and managing future energy costs.
Businesses will still need to submit an annual declaration confirming there have been no material changes to their circumstances, and the government will carry out a review at the end of Year 2.
What about hospitality, retail, offices and other sectors?
In most cases, these sectors are not included. BICS has been designed as an industrial competitiveness measure rather than a broad business support package. Its purpose is to help sectors facing international competition where energy costs directly affect competitiveness.
While hospitality, retail, offices and many service-sector organisations continue to face energy pressures, they are not the primary focus of this scheme.
Will this increase electricity bills for everyone else?
BICS will be funded through a combination of energy system changes, the removal of Carbon Price Support from April 2028, and Exchequer funding. The government says households and other businesses will not face higher electricity bills as a result of the scheme.
What should businesses do now?
Although support does not begin until 2027, businesses that may fall within scope should prepare before the October–November 2026 application window.
Practical steps include reviewing likely eligibility, checking site and meter data, understanding where energy is used across qualifying activities, and considering how future exemptions may affect procurement decisions.