BICS (British Industrial Competitiveness Scheme) Helping UK Manufacturers Reduce Electricity Costs
What is BICS? The British Industrial Competitiveness Scheme (BICS) is a UK Government initiative that forms part of the Industrial Strategy and is intended to improve the international competitiveness of UK manufacturing by reducing electricity costs for eligible businesses. From 2027, eligible businesses will receive exemptions from certain policy-related electricity charges included within their electricity bills. Specifically, exemptions apply to the indirect costs of the Renewables Obligation (RO), Feed-in Tariffs (FIT) and Capacity Market (CM). The Government expects more than 10,000 manufacturing businesses across Great Britain to qualify under the final scheme design.
Why it Matters BICS could deliver a meaningful reduction in electricity costs for eligible manufacturers. Government and industry estimates suggest savings of approximately GBP35-40/MWh, with some qualifying businesses potentially seeing electricity bill reductions of up to 25%. By lowering electricity costs, the scheme aims to support investment, productivity, growth and the long-term competitiveness of UK manufacturing.
Who May Be Eligible?
Key Benefits
Businesses must satisfy all of the following criteria to be eligible:
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Potentially significant electricity cost savings
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Eligibility valid for five years
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Annual declaration process
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One-off compensation payment in 2027 (for the period from Apr-26 to Mar-27)
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Companies House registered businesses
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Eligible manufacturing sectors defined by SIC codes
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Eligible products defined by HS codes
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Minimum annual imported grid electricity consumption of 33 MWh
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Supporting evidence provided during the application process
Did You Know? ȴ
More than 10,000 UK manufacturing businesses are expected to qualify
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Potential savings of approximately GBP35-40/MWh
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Applications open 1 October 2026 and close 30 November 2026
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Key Dates Autumn 2026
Legislation and guidance expected
1 October 2026
Application window opens
30 November 2026
Application window closes
January 2027
Eligibility confirmations issued
April 2027
RO & FIT exemptions begin
2027
One-off compensation payment
October 2027
CM exemptions begin
How Trio Can Help Trio can support clients with eligibility assessments, SIC and HS code reviews, MPAN and portfolio analysis, evidence gathering, application preparation, and supplier or landlord engagement. Do not miss the first application window: 1 October 2026 - 30 November 2026 Note: Information is based on UK Government publications available as of July 2026.
Trio | BICS (British Industrial Competitiveness Scheme)
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