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Energy | 
14/10/26

BICS is now open: How manufacturers can reduce electricity costs from 2027

The British Industrial Competitiveness Scheme (BICS) is now accepting applications, giving eligible UK manufacturers the opportunity to reduce electricity costs by up to £40/MWh from 2027. With applications closing on 30 November 2026, now is the time to check whether your business qualifies.

What is the British Industrial Competitiveness Scheme (BICS)?

The British Industrial Competitiveness Scheme (BICS) is a government initiative designed to improve the competitiveness of eligible manufacturing businesses by reducing the indirect costs of certain electricity policy charges.

For manufacturers operating in eligible, electricity-intensive sectors, these charges can represent a significant proportion of energy expenditure. BICS aims to ease this pressure by exempting qualifying businesses from the costs associated with three electricity policies:

  • Renewables Obligation (RO): supports renewable electricity generation.
  • Feed-in Tariffs (FiT): supports eligible small-scale renewable electricity generation.
  • Capacity Market (CM): helps ensure sufficient electricity capacity is available to meet demand.

Eligible businesses could benefit from reductions of up to £40 per megawatt-hour (MWh), depending on the scheme's rules and the electricity used in eligible production activities.

The exemptions will be introduced in stages: relief from the Renewables Obligation and Feed-in Tariffs is scheduled to begin in April 2027, followed by the Capacity Market in October 2027.

Importantly, businesses must apply to receive support. It will not be applied automatically simply because an organisation meets the eligibility criteria.

Who is eligible for BICS?

Eligibility is determined using specific criteria relating to your business, manufacturing activities, products and electricity consumption. To qualify, businesses must:

  • Be registered with Companies House.
  • Operate in an eligible manufacturing sector, identified through the relevant Standard Industrial Classification (SIC) codes.
  • Manufacture eligible products in Great Britain, identified through Harmonised System (HS) codes.
  • Use at least 33 MWh (33,000 kWh) of grid-supplied electricity per year at each manufacturing site for which support is claimed.

The scheme targets eligible manufacturing industries identified by the government's Industrial Strategy, including manufacturing sectors that supply essential inputs to these industries.

Eligibility is assessed on a site-by-site basis, and the level of relief will depend on the proportion of electricity used to manufacture eligible products. Meeting the electricity threshold alone does not guarantee eligibility.

How to check whether your business qualifies

The government has launched an online eligibility checker to help manufacturers assess whether they are likely to qualify.

Check your eligibility for BICS

Before starting, it is useful to have the following information available:

  • Your Companies House registration number.
  • The postcodes of your manufacturing sites.
  • Details of the products manufactured at each site, including HS codes where known.
  • Annual grid-supplied electricity consumption for each site.
  • An estimate of the electricity used to manufacture different products.

The checker provides an initial indication of eligibility rather than a final decision. Businesses should also review the government's full BICS application guidance before applying.

What is the application deadline?

The first application window opened on 1 October 2026 and closes at 11:59pm on 30 November 2026.

The key dates are:

  • 30 November 2026: application deadline.
  • Early 2027: eligible businesses are expected to receive confirmation of their eligibility.
  • April 2027: exemptions for the Renewables Obligation and Feed-in Tariffs are scheduled to begin.
  • October 2027: the Capacity Market exemption is scheduled to begin.

Applications require supporting evidence, including electricity consumption records and information about eligible manufacturing activities. It is worth gathering this information early, as applications must be completed carefully and cannot be amended after submission.

Why should manufacturers review their energy data now?

BICS highlights the importance of understanding how and where electricity is consumed across manufacturing operations.

Accurate energy data can help businesses assess potential eligibility, identify electricity consumption associated with eligible production and prepare the evidence needed to support an application.

Beyond BICS, a clear understanding of energy use can help manufacturers identify opportunities to reduce consumption, control operating costs and improve the efficiency of their production processes.

Need support with BICS?

Understanding eligibility, gathering the right evidence and preparing an application can take time. JRP Solutions can help you understand your energy use and identify the information you may need to support your BICS application.

Contact our team to discuss your requirements and explore how we can support your business. Book a call or email us: info@jrpsolutions.com

Need support understanding your energy use?

At JRP, we help organisations use energy data and analysis to identify opportunities for greater efficiency and cost savings. If you are reviewing your electricity consumption or want to understand how energy management could support your business, contact our team to discuss your requirements.