For many manufacturers, rising energy costs continue to put pressure on margins, investment plans and competitiveness. The new British Industrial Competitiveness Scheme (BICS) aims to help address this challenge by reducing some of the non-commodity costs included in electricity invoices.
From 2027, eligible businesses could receive partial or full exemptions from several policy-related charges, alongside a one-off invoice credit designed to backdate support.
If your business operates in manufacturing or supplies key manufacturing sectors, now is the time to understand whether you could qualify and what steps you'll need to take before applications open in October 2026.
Energy security and a push towards net zero have become central pillars of both the current and previous Labour administrations. However, there has also been increasing pressure from industry groups and policymakers to ensure that energy policy does not undermine industrial competitiveness, particularly amid geopolitical turmoil and rising costs.
BICS was designed to ensure that manufacturing businesses are protected from rising costs and can stay competitive by providing varying levels of exemption from certain policy charges that would normally feature on their energy invoices.
BICS has been designed to help eligible manufacturing businesses remain competitive by reducing some of the non-commodity charges included in their electricity invoices. Eligible businesses could receive exemptions from the following schemes:
The level of support will depend on how much electricity is used for qualifying manufacturing activities at each site:
RO and FIT exemptions are expected to begin in April 2027, with CM relief following in October 2027.
BICS is not a universal scheme and is designed to support around 10,000 businesses, comprising manufacturing businesses and those that supply them. Eligible businesses will be either:
The government will use a list of Standard Industrial Classification (SIC) codes, which classify economic activities, and Harmonised System (HS) codes, which classify products. Applicants need an eligible SIC sector and proof that they manufacture at least one eligible HS-coded product.
There are other conditions, such as being registered with Companies House and using more than 33 megawatt hours (MWh) of grid-imported electricity each year. Businesses must carry out their manufacturing activity in Great Britain (not Northern Ireland). It is also important to note that recipients of the British Industry Supercharger (BIS) cannot also receive BICS.
The government will use a digital process, with businesses first using an online eligibility checker before submitting site-level evidence of eligible manufacturing activity and electricity consumption. The first application window will run from 1 October to 30 November 2026. The government aims to confirm eligibility by Friday 8 January 2027.
Successful businesses will receive five years of eligibility, subject to annual declarations and a review in the second year. The government will record decisions centrally and share relevant information for each Meter Point Administration Number (MPAN) with electricity suppliers and settlement bodies. Detailed guidance is due this month (August 2026), and the process remains subject to approval by Parliament.
Applications will be open from 1 October to 30 November 2026, giving businesses a limited opportunity to secure support before the scheme launches. The government aims to confirm eligibility by 8 January 2027, although a small number of complex cases may take longer. This will help successful applicants prepare ahead of the scheme's planned introduction in 2027.
Whether your business expects to qualify or not, understanding future non-commodity costs is becoming increasingly important for energy budgeting and risk management.
Use our Energy Cost Calculator to understand how policy costs could affect your future energy spend, or visit our dedicated BICS hub for guidance, updates and practical support.