British Industrial Competitiveness Scheme (BICS): Could your business benefit from lower electricity costs?
Helping UK manufacturers reduce electricity costs
Rising energy costs continue to be a challenge for many manufacturers. That's why we're helping businesses understand the support available through the British Industrial Competitiveness Scheme (BICS), a government initiative designed to reduce electricity costs for eligible manufacturers.
If your business qualifies, BICS could help lower your electricity costs and free up more money to invest in future growth.
Here's everything you need to know, including who can apply, how much you could save and how to get ready for applications opening on 1st October 2026.
What is BICS?
The British Industrial Competitiveness Scheme (BICS) is a government scheme that helps eligible manufacturers reduce their electricity costs. It's aimed at businesses operating in key UK manufacturing sectors within the Government’s Industrial Strategy's eight growth sectors.
The scheme aims to improve the competitiveness of UK manufacturers by reducing some of the policy costs included within electricity bills. Eligible businesses will be exempt from paying up to 100% of the indirect costs associated with the following:
- Renewables Obligation
- Feed-in Tariffs
- Capacity Market
How much could eligible businesses save?
From 2027, BICS is expected to reduce electricity costs by up to £40 per megawatt hour (MWh) for eligible businesses.
The level of support a business receives will depend on its eligibility and electricity consumption. Eligible businesses will benefit through exemptions from the indirect costs of the Renewables Obligation, Feed-in Tariffs and Capacity Market schemes, helping to reduce overall electricity costs.
The exemptions are expected to apply from:
- April 2027 for Renewables Obligation costs
- April 2027 for Feed-in Tariff costs
- October 2027 for Capacity Market costs
Who can apply?
BICS is designed for manufacturers operating in specific sectors identified by the government.
To qualify, businesses must be both:
- Operate in an eligible industry sector (identified by SIC codes)
- Manufacture products included on the government's list of eligible products (identified by HS6 codes).
Your business must meet both requirements to be considered for the scheme.
The four eligibility criteria
To be eligible for BICS, a business must:
1. Be registered with Companies House
Your business must be officially registered with Companies House.
2. Operate in an eligible industry
Your business must be in one of the industries included on the government's published list of qualifying sectors.
3. Manufacture an eligible product
The products you manufacture must appear on the government's list of qualifying products.
4. Meet the minimum electricity usage threshold
Your business must demonstrate that it meets the minimum level of electricity usage required under the scheme. Each manufacturing site must consume at least 33 MWh of grid-supplied electricity per year. Businesses will be asked to provide the most recent 6 consecutive months for which information is available within the last 12 months.
When do applications open?
Applications for BICS will open on 1st October 2026 and close on 30th November 2026.
How to apply
Applying for BICS is straightforward:
Step 1: Check your eligibility
The Department for Business, Innovation, Science and Trade has developed an online eligibility checker to help businesses assess whether they are likely to qualify for the scheme.
Step 2: Gather your information
Ensure you have the relevant company, product and electricity usage information ready to support your application.
Step 3: Submit your application
Applications can be submitted when the application window opens on 1st October 2026.
Step 4: Await assessment
Applications will be reviewed against the scheme's eligibility requirements before a decision is made.
Advice Hub: reducing your energy costs
While schemes like BICS can help lower electricity costs, improving energy efficiency can help businesses maximise savings even further.
Whether you're looking to lower your bills, improve efficiency, or better understand your energy use, our Advice Hub is packed with practical tips, tools and expert guidance to help your business save energy and reduce costs.
Explore our energy-saving resources
Our Advice Hub includes:
- Energy-saving tips for small businesses
- Practical efficiency guidance
- Industry insights and advice
- Tools and resources to help reduce energy consumption
Visit the Advice Hub
Frequently Asked Questions
Do I need to be an EDF customer to apply?
No. Eligibility is determined by the government's scheme requirements rather than your energy supplier. Applicants must meet the published BICS criteria.
What happens after you apply?
Once you've submitted your application, the government will review it against the scheme's eligibility requirements before making a decision.
The government will contact businesses to confirm whether their application has been successful. If your business qualifies for BICS, you won't need to take any further action. The government will notify your electricity supplier, and any eligible exemptions will be applied automatically to your electricity costs.
This means that once you've successfully applied and been approved, there's no need to contact your supplier or submit any additional requests to receive the support.
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