Q&A: What does the British Industrial Competitiveness Scheme mean for UK manufacturers?

With energy costs continuing to be a key consideration for UK manufacturers, the British Industrial Competitiveness Scheme (BICS) could provide eligible businesses with an opportunity to reduce some of the policy costs associated with their electricity consumption.

Applications for BICS open on 1 October 2026 and close on 30 November 2026, with support beginning from April 2027 for eligible businesses.

Zenergi’s Andy Pinder, Climate Change Engineer, answers our questions about what manufacturers need to know about the scheme and how they can prepare.

Q. What is the British Industrial Competitiveness Scheme?

BICS is a Government scheme designed to help improve the competitiveness of eligible UK manufacturing businesses by reducing some of the indirect policy costs included within electricity bills.

For eligible businesses, the scheme provides exemptions from the indirect costs associated with the Renewables Obligation and Feed-in Tariffs from April 2027, with the Capacity Market exemption following from October 2027. The Government estimates that the scheme could reduce electricity costs by up to £40 per MWh for eligible businesses.

The intention is to help UK manufacturers manage electricity costs and remain competitive, particularly in sectors where electricity represents a significant proportion of operating costs.

Q. Who could be eligible?

BICS is targeted at specific manufacturing industries. Eligibility is based on defined SIC and HS codes, as well as electricity consumption and other criteria.

The Government has now published the final list of eligible activities for 2027, so manufacturers should start by checking whether their business activities and products fall within the relevant codes.

There is also an electricity intensity requirement. Businesses will need to demonstrate that they meet the relevant threshold, so simply operating within an eligible manufacturing sector doesn’t automatically mean a business will qualify.

Q. How much could BICS reduce electricity costs?

The potential saving will vary from business to business, depending on factors such as electricity consumption and eligibility.

The Government has indicated that BICS could reduce electricity costs by up to £40 per MWh for eligible manufacturing businesses. For a manufacturer with significant electricity consumption, that could represent a meaningful reduction in energy costs.

It’s important, though, not to look at the headline figure in isolation. Businesses should consider their own consumption, eligibility and the elements of their electricity costs that will be affected by the scheme.

Try our savings calculator

Use our BICS calculator to illustrate the potential savings available – answer a couple of quick questions about your SIC code and electricity consumption to get an instant estimate.

Q. When can businesses apply?

Applications open on 1 October 2026 and close at 11:59pm on 30 November 2026.

That might sound like there is plenty of time, but I would encourage manufacturers not to leave it until the final few days.

There are a number of pieces of information and supporting evidence that applicants may need to provide, so checking your position and gathering the relevant information early is sensible.

Q. What information will businesses need to provide?

The application process requires businesses to demonstrate that they meet the scheme’s eligibility criteria.

This can include information about the business, its manufacturing activities, relevant SIC and HS codes, electricity supply and meters, as well as evidence relating to electricity consumption and eligible activities.

One important point is that applications need to be complete and accurate when submitted. Businesses shouldn’t assume they can submit an incomplete application and come back to add information later.

My advice would be to use October to understand the requirements, check your eligibility and get your evidence together rather than waiting until November.

Q. What should manufacturers be doing now?

There are a few practical steps businesses can take.

First, check your eligibility against the Government’s published SIC and HS codes.

Second, review your electricity consumption and make sure you have access to the relevant consumption data and meter information.

Third, understand your electricity costs. Knowing how much you’re currently paying in policy costs will help you understand the potential impact of BICS.

And finally, speak to your energy or procurement team about how BICS could fit alongside your wider energy strategy.

The scheme shouldn’t be viewed in isolation. It is another factor that manufacturers should consider when looking at energy procurement, costs and longer-term competitiveness.

Q. Is BICS just about reducing energy bills?

The immediate benefit is around reducing electricity costs, but there is a wider picture.

Energy costs can have a significant impact on the competitiveness of manufacturing businesses. Any reduction in electricity costs could potentially free up funds that can be used elsewhere in the business – whether that’s investment, efficiency improvements, technology or growth.

It’s also an opportunity to take a fresh look at how energy is managed across the organisation.

For manufacturers, understanding consumption, procurement and the different components that make up an energy bill is increasingly important. BICS is another reason to make sure you have a clear picture of your energy position.

Q. What are the biggest challenges you expect businesses to face?

I think the biggest challenge will be making sure businesses understand whether they actually qualify and have the right evidence ready.

The eligibility criteria are quite specific, and manufacturers shouldn’t assume that because they operate in a particular industry they will automatically qualify.

There is also a relatively short application window. Applications open on 1 October and close at the end of November, so businesses that wait until the deadline is approaching could find themselves under unnecessary pressure.

Preparation is key.

Q. What would your advice be to a manufacturer considering BICS?

Don’t wait until November.

Start by checking your eligibility and understanding what information you’ll need. If you appear to qualify, gather the relevant evidence and make sure you understand your current electricity costs.

I’d also recommend looking at BICS alongside your wider energy strategy. A reduction in policy costs is valuable, but businesses should continue to consider procurement, consumption, efficiency and longer-term energy planning as part of the bigger picture.

Q. How can Zenergi help?

We can help manufacturers understand what BICS could mean for their business and how it fits within their wider energy strategy. From reviewing electricity consumption and identifying eligible manufacturing activities to calculating potential benefits, preparing the supporting evidence and audit trail, and managing the application process, we can take care of the detail from start to finish.

That starts with understanding eligibility and the potential impact on electricity costs, but it can also extend to looking at procurement, consumption and opportunities to improve energy efficiency.

For manufacturers facing continued pressure around energy costs, having a clear understanding of the opportunities available is increasingly important.

BICS could provide a valuable opportunity for eligible businesses, but the first step is understanding whether you qualify and being prepared to act when applications open.