Government schemes

BICS: could your manufacturing site cut its electricity costs?

The British Industrial Competitiveness Scheme exempts eligible manufacturers from some of the policy costs on their electricity bills. Applications for the first year opened on 1 October 2026 and close at 11:59pm on 30 November 2026.

UPDATED 5 OCTOBER 2026 BY TOM WAUGH, FOUNDER & MANAGING DIRECTOR 6 MIN READ PUBLISHED 29 SEPTEMBER 2026 ENERGY PLANNER INSIGHTS

Policy costs make up part of every business electricity bill. BICS removes three of them for eligible manufacturers, but only for those who apply in time, and the first year's window is just under nine weeks long.

What BICS is

The British Industrial Competitiveness Scheme (BICS) is a government scheme to lower electricity costs for manufacturers in eligible sectors. Successful applicants are exempted from the indirect costs of three electricity policy schemes: the Renewables Obligation, Feed in Tariffs and the Capacity Market.

The government says the scheme will cut electricity costs by up to 25% for more than 10,000 manufacturers across Great Britain. Relief from the Renewables Obligation and Feed in Tariff costs starts in April 2027, with Capacity Market relief following from October 2027.

It covers electricity only. Gas costs are not affected.

Who may qualify

A business must meet all four of these criteria:

Eligibility is checked product by product, so it pays to look up the code for each thing a site makes rather than assume your sector is covered.

The guidance defines a manufacturing site as an area in Great Britain where a person with control over, or use of, that area carries out manufacturing. Each legal entity can make one application a year, which can cover several sites. Groups may want to check which company in the group meets the criteria for each site before applying.

How much of the cost is removed

The exemption depends on how much of a site's electricity is used to make eligible products:

Once granted, the exemption is valid for five years. You make a declaration in years one, three and four, and in year two you submit a report for a full eligibility review.

The dates that matter

Applications for the first year opened on 1 October 2026 and close at 11:59pm on 30 November 2026. Decisions are expected early in 2027. Applications are made online through GOV.UK.

Businesses confirmed as eligible will also receive a lump sum worth around a year's relief. The government has said only those applying this year can get it.

It is worth gathering the evidence now: your SIC codes, the HS6 codes for what each site makes, the Meter Point Administration Number (MPAN) for each site, and electricity bills or meter data covering at least the most recent six consecutive months, within the last twelve, for each site.

Will the saving reach your bill?

The exemption is applied by your electricity supplier. The government expects suppliers to apply it, but how they pass it on is at their discretion. It may come through billing adjustments, pricing or a change to the contract. It is worth checking how your contract treats policy costs and asking your supplier how the exemption will appear on your bills.

It is also worth checking your SIC codes at Companies House describe what you genuinely do. Codes that are out of date or too general can fail an otherwise eligible business at the first question.

Official GOV.UK links

Prefer us to do the legwork? Leave your details below and we will check each site for you, gather the codes and evidence, and make sure your supplier applies the exemption once you are approved.

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Could your site qualify?

We screen your eligibility against the published codes and thresholds, and look at how your supply contract treats policy costs. No obligation.

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How Energy Planner helps

We screen each manufacturing site against the eligible SIC and HS6 codes and the consumption threshold, review how your supply contracts treat policy costs, and once relief begins, check your bills to confirm it has been applied.

You can also run an initial check yourself using the government eligibility checker. It gives an indication only, so it is worth confirming the detail before you apply on GOV.UK. The full guidance for applicants and the 1 October announcement are both on GOV.UK.

This page summarises published government guidance as at October 2026 and is general information, not advice on your specific circumstances. Eligibility decisions rest with the government and details may change, so it is worth confirming directly on GOV.UK before applying.

Want to know if you qualify?

Tell us about your sites and we will screen your BICS eligibility and look at how your contracts treat policy costs. Nothing to sign.

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