Expanded BICS: 10,000 UK Manufacturers eligible for 25% discount on electricity bills

The Updated British Industrial Competitiveness Scheme

The British Industrial Competitiveness Scheme (BICS) is being expanded to help more UK businesses reduce their electricity costs and remain competitive.

The Government has confirmed that the expanded scheme is expected to cover more than 10,000 UK businesses, up from around 7,000 under the original proposals. Eligible manufacturers will receive exemptions from several electricity policy costs, potentially reducing electricity costs by around £35–£40/MWh.

With BICS due to launch in April 2027, manufacturers should now be checking their eligibility and preparing for the application process.

Who is covered by BICS?

BICS is targeted at eligible manufacturing businesses in Great Britain, including businesses operating in:

• Manufacturing frontier industries within the IS-8 Industrial Strategy sectors
• Manufacturing foundational industries supplying important inputs to those sectors

Eligibility is based on a combination of SIC codes – which identify the business activity – and HS codes, which identify the products being manufactured.

The Government has now confirmed the final SIC and HS code lists for the 2027 scheme.

Businesses must also meet the relevant electricity-intensity threshold to qualify.

The expanded scheme is particularly significant for manufacturers that previously fell outside the British Industry Supercharger, as BICS has been designed to provide support to a broader range of businesses.

How is the BICS discount applied?

Eligible businesses will receive exemptions from the indirect costs of:

• Renewables Obligation (RO)
• Feed-in Tariffs (FiTs)
• Capacity Market (CM)

The exemptions will be applied through electricity suppliers, reducing the non-commodity costs passed on to eligible businesses.

The level of support depends on the proportion of electricity used for eligible manufacturing activity:

• Less than 25%: No exemption
• 25% to less than 50%: 50% exemption
• 50% or more: 100% exemption

The Government estimates the benefit could be worth around £35–£40/MWh, or 3.5–4p/kWh, although the actual saving will depend on the business and its qualifying electricity consumption.

Eligible businesses will also receive a one-off payment when BICS launches in April 2027, reflecting the support they would have received from April 2026.

How do businesses apply?

The application process will be managed by the Department for Business and Trade (DBT) and is expected to be data-driven and evidence-based.

Businesses will need to:

• Confirm they operate within eligible sectors (via SIC codes)
• Provide details of the products they manufacture (via HS codes)
• Submit electricity consumption data
• Demonstrate the proportion of energy used for qualifying manufacturing activity

Applications will be open in the following windows:

• 1 October 2026 – 30 November 2026: Businesses are invited to provide information to DBT to support identification of eligibility.
• 1 October 2026 – 8 January 2027: DBT will assess grant eligibility for businesses.
• November 2026 – 1 April 2027: Once eligible businesses begin being confirmed, electricity suppliers will have until April to process exemptions for eligible businesses.

How we can help

For many businesses, the complexity of BICS lies in the qualification and application process. That’s where we come in.

As an energy broker working closely with UK manufacturers, we can:

• Assess your eligibility against the latest BICS criteria
• Translate SIC and product classifications into plain English
• Analyse your energy usage and cost structure to estimate potential savings
• Support with application submissions and data gathering
• Ensure your supplier correctly applies the exemption to your bills

Perhaps most importantly, we can help you identify whether this expansion creates an opportunity where previously there wasn’t one.

With over 3,000 additional businesses now expected to qualify, this expansion represents a significant opportunity for UK manufacturers to reduce costs and improve competitiveness.

If you’re a UK manufacturer and want to understand whether you qualify -- and how much you could save -- get in touch today for a free, no-obligation advice from a team of experienced professionals.