Electricity remains a major operating cost for many UK manufacturers. From 2027, a new government scheme could reduce that burden for eligible businesses by up to £40 per megawatt hour (MWh).
The British Industrial Competitiveness Scheme (BICS) is designed to help qualifying manufacturers in Great Britain compete more effectively by reducing some of the policy costs included within electricity bills.
Applications open on 1 October 2026 and close on 30 November 2026, so businesses that may qualify should begin checking their eligibility and gathering the necessary information now.
What is the British Industrial Competitiveness Scheme?
BICS will provide eligible manufacturing sites with exemptions from the indirect costs of three government energy policies:
- the Renewables Obligation
- the Feed-in Tariff
- the Capacity Market
Together, these exemptions could reduce electricity costs by up to £40 per MWh from 2027. The actual benefit will depend on factors including the electricity used for eligible manufacturing activity at each qualifying site.
Who may be eligible?
The scheme is intended for manufacturing businesses operating within selected growth and foundational industries. To qualify, a business must:
- be registered with Companies House
- operate within an eligible Standard Industrial Classification (SIC) code
- manufacture an eligible product identified by a Harmonised System (HS) code
- meet the scheme’s minimum electricity-usage requirement
Eligibility is assessed on a site-by-site basis. A company with several manufacturing locations may therefore find that one site qualifies while another does not.
The government has published a final list of eligible SIC and HS codes for the 2027 scheme. It also provides an online eligibility checker to help businesses understand whether they are likely to qualify. The checker offers an initial indication only; it is not a formal decision on eligibility.
What information will you need?
Before using the eligibility checker or preparing an application, businesses should gather:
- their Companies House registration number
- the postcode of each manufacturing site
- details of the products manufactured at each location, including HS codes where known
- the total electricity purchased from the grid at each site each year, measured in MWh
- an estimate or measurement of the electricity used to manufacture each product at each site
Businesses using a private network or private wire arrangement should check the separate rules set out in the government guidance.
Why act now?
The application window runs for just two months, from 1 October to 30 November 2026. Reviewing your information in advance gives you time to identify missing data, confirm the relevant codes and understand the electricity usage across each manufacturing site.
Even if you are unsure whether your business qualifies, it is worth completing the government’s eligibility checker rather than assuming the scheme does not apply to you.
How TST can help
Eligibility decisions and applications are managed through the government scheme. However, TST can help you review your current business energy arrangements, understand the information shown on your bills and consider how your electricity contract fits into your wider cost-management plans.
If you think your manufacturing business may be eligible for BICS, start by reviewing the official government guidance and eligibility checker.
For support with your current business energy contract, speak with TST. We can review your existing arrangements and talk you through the options available to your business.
Visit www.tst.uk.net to get in touch.
Information correct at the time of publication. Scheme rules and guidance may be updated. Businesses should refer to GOV.UK for the latest eligibility and application details.
