British Industrial Competitiveness Scheme (BICS): what manufacturers need to know

What is BICS?

BICS is a government scheme that cuts electricity costs for eligible manufacturers in England, Scotland and Wales. It was announced as part of the government's Modern Industrial Strategy in 2025, because UK manufacturers have paid more for electricity than many of their competitors. In 2023, electricity prices for UK industrial users were almost 50% higher than in France and Germany, according to the ONS.

It isn't limited to heavy industry. The government says more than 10,000 manufacturers can apply, and smaller businesses can qualify if they meet the criteria.

It does this by exempting eligible businesses from the indirect costs of three schemes that are normally built into business electricity prices:

• the Renewables Obligation (RO) and Feed-in Tariffs (FiT), which fund renewable generation
• the Capacity Market (CM), which pays to keep enough power available at peak times

BICS doesn't cover the rest of your electricity bill, such as the wholesale cost of energy or network charges like TNUoS.

How much you save depends on what you pay for electricity, so it'll be different for every business.

Is BICS the same as the British Industry Supercharger?

No, they're separate schemes. The Supercharger supports energy-intensive industries such as steel, chemicals, glass, paper and ceramics. BICS covers a much wider group of manufacturers. If you already get Supercharger support, your BICS application will ask you to confirm it.

The Supercharger also includes the Network Charging Compensation Scheme, which refunds eligible energy-intensive businesses for part of their electricity network charges.

Who is eligible for BICS?

You need to meet all four of these criteria:

1. Your business is registered on Companies House.
2. You operate in an eligible sector, with at least one eligible SIC code (the code at Companies House that describes what your business does).
3. You make eligible products in Great Britain, identified by HS codes (the standard codes used to classify products in trade), at the site you're claiming for.
4. That site uses at least 33 MWh (33,000 kWh) of grid electricity a year. Electricity you generate on site doesn't count.

The government's eligibility checker gives you an early indication. Your final eligibility is only confirmed once you've applied in full.

What if your site makes more than one thing?

If a site makes only eligible products, it'll normally get a 100% exemption. If it also does other work, the exemption depends on how much of its grid electricity goes into eligible production:

• 25% or less: no exemption
• more than 25% but under 50%: 50% exemption
• 50% or more: 100% exemption

Supporting activities, such as lighting, heating and compressed air, count towards the total depending on how much of their use supports eligible production (GOV.UK guidance for applicants).

How much could BICS save?

The government estimates that the BICS exemptions are worth around £35 to £40 for every megawatt hour (MWh) of eligible grid electricity you use (GOV.UK, April 2026). That's where the "up to 25%" figure comes from. The share of your bill it covers depends on the price you pay for electricity, so the percentage will be different for every business.

Here's roughly what £35 to £40 per MWh could add up to over a full year:

• 33 MWh a year (the minimum to qualify): £1,155 to £1,320 with a 100% exemption, or £578 to £660 with a 50% exemption
• 100 MWh a year: £3,500 to £4,000 with a 100% exemption, or £1,750 to £2,000 with a 50% exemption
• 250 MWh a year: £8,750 to £10,000 with a 100% exemption, or £4,375 to £5,000 with a 50% exemption
• 500 MWh a year: £17,500 to £20,000 with a 100% exemption, or £8,750 to £10,000 with a 50% exemption

How we worked this out: we multiplied the site's yearly grid electricity in MWh by £35 and by £40, using the government's estimate. For a 50% exemption, we halved the result. Figures are rounded to the nearest pound.

Things to bear in mind

• These are examples, not quotes. What you actually save depends on how much grid electricity you use, which exemption level you get and how your supplier applies it to your bills.
• The first year will be lower. The Renewables Obligation and Feed-in Tariff exemptions start in April 2027, but the Capacity Market exemption doesn't start until October 2027.
• Only grid electricity counts. Electricity you generate on site isn't included.
• The £35 to £40 figure is the government's estimate from April 2026. Check GOV.UK for the latest information.

When does BICS start?

• 1 October 2026: first application window opened
• 30 November 2026, 11:59pm: application window closes
• January 2027: businesses told whether they're eligible
• April 2027: RO and FiT exemptions start
• October 2027: Capacity Market exemption starts

If you're confirmed through this first window, you'll also get a one-off lump sum worth roughly a year's relief. You'll only get it if you apply this year.

How do you apply for BICS?

The government won't contact you, so you'll need to apply yourself through the BICS application service on GOV.UK. Applications for the first year close at 11:59pm on 30 November 2026.

Before you start

• Check you're likely to be eligible. Use the government's BICS eligibility checker. The list of eligible SIC and HS codes is on GOV.UK too.
• Set up a GOV.UK One Login if you don't already have a business account. You'll usually need your passport or driving licence to do this.
• Decide who'll complete the application. It has to be an officer registered at Companies House, or someone an officer has authorised. That can be a consultant or another third party. If a different person needs to take over later, they'll have to start a new application, so agree this before you begin.
• Find your company authentication code. This is the 6-digit code you use to file accounts with Companies House. It's not the same as the 11-digit personal verification code Companies House issues.

What you'll need

You can only submit one application per company, but it can cover several sites.

For your company:

• your Companies House registration number
• your SIC codes

For each site you're claiming for:

• the site's details
• the MPAN for each meter (here's where to find your MPAN)
• six months of electricity consumption evidence for each MPAN, such as your bills
• six months of evidence of eligible manufacturing activity at the site
• details of the products made at the site, both eligible and ineligible
• sub-metering data, if you have it, or an explanation of how you've estimated eligible use
• details of any private wire arrangements or other electricity relief schemes you get, such as the British Industry Supercharger

If a landlord supplies your electricity or you share a meter

If a landlord or another third party supplies your electricity, you'll also need:

• evidence of the arrangement, such as a tenancy agreement, recharge agreement or contract
• invoices, billing statements or other evidence showing your electricity use and charges

If you share an MPAN with another organisation, you'll also need:

• evidence of how electricity use is split between the organisations
• evidence of the share your company uses

Before you submit

• You can save your application and come back to it at any point before the deadline.
• Check everything carefully. You can't change your application once it's been submitted.
• Partnerships and other types of business may also be able to apply, as long as they're registered with Companies House.

What happens once you're approved?

The scheme shares your details with your electricity supplier, which is then expected to apply the exemption to your bills. Suppliers show this in different ways: as a reduced or zero charge, a line such as "50% exempt", or folded into your unit rate. If you're not sure where to look, our guide to your business energy bill walks through each section.

Eligibility lasts five years. You'll need to make an annual declaration in years one, three and four, there's a fuller review in year two, and you must report any material changes along the way.

If the exemption doesn't show up on your bill, speak to your supplier first. If that doesn't resolve it, smaller businesses can go to the Energy Ombudsman.

What if your business isn't eligible?

BICS only covers part of your electricity price, and it doesn't cover every business. Whether you qualify or not, these are worth doing:

• Know when your contract ends. If it ends without a new deal in place, you'll usually move onto out-of-contract rates.
• Compare before you renew. We compare business electricity deals from a panel of trusted suppliers, so you can see your options before you commit.
• Think about contract length. A longer fixed term means renewing less often, while a shorter one lets you compare again sooner. Our guide to 2 to 3 year contracts covers the trade-offs.
• Plan how you buy. If you run a high-usage site, our guide to energy procurement for manufacturing explains fixed, flexible and hybrid buying.
• Look at on-site generation. Solar panels and other on-site generation reduce how much electricity you buy from the grid.