For many UK manufacturers, high electricity costs have become an unavoidable part of doing business. From October, a new government scheme could help eligible businesses significantly reduce that burden.
The British Industrial Competitiveness Scheme (BICS) is designed to reduce electricity costs for eligible manufacturers by removing certain policy costs from their electricity bills.
For businesses that qualify, the potential saving is significant: up to £40 per MWh – potentially reducing electricity bills by around 25%.
But there is a relatively short window to apply.
The British Industrial Competitiveness Scheme is a new government support scheme for eligible manufacturing businesses in Great Britain.
It provides exemptions from the indirect costs associated with:
Unlike existing support aimed predominantly at the most energy-intensive industries, BICS extends relief to a broader range of manufacturing businesses across eligible frontier and foundational sectors.
That means manufacturers that may not previously have qualified for energy-intensive industry support could now be eligible for meaningful reductions in their electricity costs.
The government says BICS could reduce electricity costs by up to £40 per MWh for eligible manufacturers.
The actual level of relief depends on how much of the electricity consumed at a manufacturing site relates to eligible products and manufacturing activities.
Where eligible manufacturing accounts for more than 25% but less than 50% of relevant electricity use, a 50% exemption may apply. Where it accounts for 50% or more, the exemption level can rise to 100%.
For manufacturers operating energy-intensive production facilities, the financial impact could therefore be substantial.
There are four main eligibility criteria. Your business must:
Business size isn't the deciding factor. Both SMEs and larger manufacturers can qualify if they meet the scheme criteria.
One of the areas that may require more work is identifying the correct HS codes for the products manufactured at each site. These are the six-digit product classifications used to establish whether the products you manufacture fall within the scheme.
Fidelity Energy can help you identify the relevant codes and understand whether your sites are likely to qualify.
The first application window opens on 1 October 2026 and closes at 11:59pm on 30 November 2026.
That gives businesses just 61 days to apply.
Applications need to include supporting information and evidence, including electricity consumption, manufacturing sites and MPANs, products manufactured and evidence of production.
Importantly, the government guidance states that applications cannot be amended once submitted. Getting the information together – and getting it right – matters.
Successful applicants are expected to receive their eligibility decision in January 2027. RO and FiT exemptions are then due to begin from April 2027, with Capacity Market exemptions following from October 2027.
Although the application window runs until the end of November, manufacturers should start checking their position now.
Understanding whether you qualify can involve more than simply checking your SIC code. You may also need to identify the correct HS codes for products manufactured at each site, establish how much electricity is attributable to eligible manufacturing activity, gather six months of electricity bills and prepare appropriate production evidence.
Starting early gives you time to resolve any gaps before submitting your application.
We've created a BICS eligibility checker to help manufacturers understand whether they could be eligible. You can check your SIC and product codes against the official eligible lists and work through the key BICS criteria in around two minutes.
If you think your business may qualify – or you're simply not sure where to start – we're here to help.
Our team can talk you through BICS, help you understand the eligibility criteria and what they mean for your business, and explain what you'll need to prepare ahead of an application.
Not sure if BICS applies to your business? We're on stand-by for an informal, no-obligation chat.
