Manufacturing businesses checking their electricity costs this autumn should also check whether they qualify for the British Industrial Competitiveness Scheme, known as BICS.
Applications for the first year close at 11.59pm on 30 November 2026.
The scheme is intended to reduce electricity costs for eligible manufacturers in Great Britain. However, being a manufacturer or having a large electricity bill does not automatically mean a business qualifies.
What could the scheme provide?
The government says BICS could reduce electricity costs by up to £40 per megawatt hour for qualifying businesses.
Support takes the form of exemptions from certain policy costs included in electricity charges.
Renewables Obligation and Feed-in Tariffs exemptions are scheduled to begin in April 2027, followed by the Capacity Market exemption in October 2027.
The amount of support depends on the business’s circumstances. The maximum figure is not a guaranteed saving for every applicant.
Who should check eligibility?
The criteria include Companies House registration, operating in an eligible sector, manufacturing an eligible product and meeting the relevant electricity-use requirements.
Businesses should use the government’s eligibility checker, then read the applicant guidance to understand the detailed requirements and evidence needed.
For organisations with several manufacturing premises, checking the requirements for each site is particularly important.
Don’t leave the paperwork until the deadline
An initial eligibility check is a useful first step, but businesses should allow time to prepare the application properly.
That may involve gathering information about manufacturing activities, products, sites and electricity supplies.
The government guidance explains what is required. Applications cannot be amended once submitted, so it is important to check the information carefully.
The official scheme page provides the eligibility checker, application route and current guidance:
British Industrial Competitiveness Scheme on GOV.UK
Keep sight of your energy contracts too
While reviewing possible support, make sure you also understand your current electricity agreement and when it finishes.
Your next contract decision should take account of your usage, the available terms and your business’s budgeting needs.
Jo Bate at Your Energy Consultant helps manufacturing and engineering businesses review their energy arrangements and compare contract options.
For help with a commercial energy review, email joanne@yourenergyconsultant.co.uk.
