Who qualifies for the British Industrial Competitiveness Scheme?

What BICS is

The British Industrial Competitiveness Scheme is a government plan to cut electricity costs for manufacturers by exempting them from some policy costs on the bill. The government's launch announcement said it would cover over 7,000 businesses in sectors such as automotive, aerospace and chemicals, and GOV.UK says it will cut electricity costs by up to £40 per megawatt hour from 2027. Later reports put the number of eligible firms at over 10,000; the GOV.UK pages we checked give no final count, so treat both as estimates.

Eligibility tests

GOV.UK's guidance for applicants (last updated 12 October 2026) sets four tests, all of which must be met:

• Company. The business is registered at Companies House.
• Sector test. It operates in an eligible sector, identified by 4-digit SIC 2007 codes. "Frontier" manufacturing sectors need an electricity intensity above 0.9% and "foundational" sectors above 2.7%.
• Product test. It makes at least one eligible product, identified by 6-digit HS codes, in Great Britain.
• Site size. Each site uses at least 33 MWh of grid electricity a year, evidenced by six months of bills.

Relief is then banded by the share of a site's electricity used for eligible manufacturing: 25% or less gets none, more than 25% but under 50% gets 50%, and 50% or more gets 100%. Electricity already covered by the British Industry Supercharger cannot get BICS relief as well; BICS can only apply to the uncovered share.

Worked example: a site uses 400,000 kWh a year in total, of which 120,000 kWh powers eligible production. 120,000 ÷ 400,000 = 30%, so under the proposed bands it would get the 50% level of relief.

What you would get

The benefit is exemption from the indirect costs of certain levies: the Renewables Obligation and Feed-in Tariffs from April 2027, and the Capacity Market from October 2027. GOV.UK puts the value at up to £40 per MWh; it is a maximum, not a guaranteed saving. For scale, 300 MWh at £35 would be 300 × £35 = £10,500 a year, though your own saving depends on your supply contract and how levies are billed. Read about the Renewables Obligation and Capacity Market.

Status and how to apply

The government intends to amend the secondary legislation for the RO, FiT and Capacity Market, expected by autumn 2026 and subject to Parliament's approval; the guidance applies once that takes effect. We could not confirm that the legislation has been made. The first application window opened on 1 October 2026 and closes at 11:59pm on 30 November 2026, with eligibility decisions expected in early 2027. Exemptions are expected to last five years, subject to annual declarations. Check GOV.UK for any changes and ask your supplier how exemptions would appear on your bill.

Do not pay a third party to "apply" for support on your behalf. Check official channels first.

If you do not qualify

Most small businesses will not. See help for small business bills and energy-intensive industry support.

What to do now

If you are a manufacturer, start by finding out how much of your site's electricity goes to production, and ask your supplier or energy manager how levies appear on your bill. Keep half-hourly or sub-meter data if you have it, because the share of use for eligible products may need evidence. Then watch GOV.UK for the final rules, as the proposals have moved between consultations.

Next steps

1. Identify your activity code and products.
2. Work out the share of electricity used for eligible production.
3. Read factory and manufacturing energy.

Biz Energy is independent and not affiliated with any supplier, broker or comparison site, and takes no commission. This is general information, not legal, tax or financial advice.