British Industrial Competitiveness Scheme (BICS)

The UK Government has launched the British Industrial Competitiveness Scheme (BICS) to help eligible energy-intensive manufacturers reduce their electricity costs and improve their international competitiveness. The scheme is designed to support businesses operating in qualifying manufacturing sectors by providing exemptions from the indirect costs associated with certain energy policy charges, including the Renewables Obligation, Feed-in Tariffs and Capacity Market.

For many manufacturers, energy costs represent a significant proportion of operating expenditure. By reducing these charges, the scheme aims to improve productivity, encourage investment, support growth and strengthen the UK’s industrial base. Support provided through the scheme is expected to begin in 2027 for successful applicants.

Eligibility is based on several criteria, including the nature of a business’s manufacturing activities, relevant SIC and HS codes, and electricity usage levels. To help businesses determine whether they may qualify, the Department for Business and Trade has developed an online eligibility checker and detailed guidance.

Applications for the scheme will open on 1 October 2026 and close on 30 November 2026. Manufacturers are encouraged to review the guidance and eligibility requirements as early as possible to ensure sufficient time to prepare any information required as part of the application process.

While the scheme does not provide a direct grant payment, the potential long-term savings on electricity costs could be substantial for qualifying businesses. This makes BICS an important opportunity for manufacturers looking to reduce overheads, improve resilience and invest in future growth.

Businesses operating in energy-intensive manufacturing sectors should consider reviewing the scheme in detail and assessing whether they are eligible to apply.

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