A new opportunity for Great Britain manufacturers to reduce electricity costs
The Government’s new flagship energy support scheme – the British Industrial Competitiveness Scheme (BICS) – is due to begin in April 2027, with the aim of providing significant electricity cost savings for thousands of eligible manufacturers across Great Britain.
The scheme is expected to support more than 10,000 businesses, making it considerably broader in scope than previous energy support schemes.
Businesses should start assessing their eligibility now so they are ready for the first-year submission window, which is expected to run from 1 October to 30 November 2026.
Missing the first-year window could mean waiting until a subsequent identification window before gaining access to the scheme. Businesses accepted into the first year are also expected to receive a retrospective payment reflecting the support they would have received had BICS been operating from April 2026.
What is the opportunity?
For eligible businesses, the Government estimates that BICS could reduce electricity costs by approximately £35–£40 per MWh, with potential electricity bill savings of up to 25%.
BICS is intended to reduce the indirect electricity costs associated with:
- Renewables Obligation (RO)
- Feed-in Tariffs (FIT)
- Capacity Market (CM)
The relief is expected to begin from April 2027 for RO and FIT, with CM relief following from October 2027.
As noted above, businesses accepted into the first year of the scheme are expected to receive a one-off retrospective payment, reflecting the support they would have received had BICS been in operation from April 2026.
Importantly, BICS is not limited to businesses that have previously qualified for the Energy Intensive Industries (EII) schemes. The final eligible activity lists extend beyond the traditional EII sectors, meaning businesses that have not previously benefited from energy support may now be eligible.
Who is likely to qualify?
Eligibility is based on specific criteria, including the business’s activities and the products it manufactures.
In broad terms, businesses will need to:
- Be qualifying manufacturing businesses operating in Great Britain.
- Operate within an eligible SIC4 sector.
- Manufacture at least one product covered by the eligible HS6 product list.
- Meet the applicable sector-level electricity-intensity criteria.
- Have electricity consumption associated with qualifying manufacturing activity.
Eligible activities extend beyond the traditional EII sectors and include qualifying manufacturing in areas such as:
- Automotive and aerospace
- Defence
- Pharmaceuticals and life sciences
- Electronics and semiconductors
- Battery manufacturing
- Clean energy supply chains
- Chemicals
- Steel and metals
- Advanced manufacturing
Businesses should check their specific SIC and HS codes, rather than relying solely on their industry description.
What should businesses do now?
Although applications do not open until October 2026, businesses should begin preparing now.
Key areas to review include:
- Whether the company’s SIC4 code is eligible.
- Whether manufactured products fall within the qualifying HS6 code list.
- Site-level electricity consumption.
- Metering arrangements and MPAN information.
- The proportion of electricity used for qualifying manufacturing.
- Whether electricity is supplied directly or through a landlord, industrial estate or private network.
Businesses supplied through landlord or private network arrangements may still qualify, but additional evidence may be required to demonstrate qualifying electricity consumption and the associated costs.
How much relief will I receive?
The level of support depends on the proportion of a site’s electricity used for qualifying manufacturing activities:
| Qualifying manufacturing electricity use | Relief |
| Less than 25% | No relief |
| 25% to less than 50% | 50% exemption |
| 50% or more | 100% exemption |
The calculation is carried out site by site, so businesses with multiple locations should assess each site separately.
How does BICS interact with EII and the Supercharger?
The Government has confirmed that the EII Compensation Scheme will continue alongside BICS.
However, businesses eligible for both BICS and the British Industry Supercharger will generally need to choose which scheme to use rather than receiving duplicate support.
The Government expects the Supercharger to provide a higher level of support for businesses eligible for both, so businesses should carefully compare the available options before deciding which route provides the greatest benefit.
A significant opportunity for manufacturers
With potential savings of £35–£40 per MWh, a reduction in electricity bills of up to 25%, and a retrospective payment for first-year participants, BICS could provide significant savings for eligible manufacturers.
Businesses should not wait until October to start preparing. Reviewing SIC and HS codes, electricity consumption, metering arrangements and existing energy support now will help ensure they are ready to submit the required information on time.
To understand whether your business could qualify for BICS and ensure you are ready for the October 2026 submission window, get in touch with us for support.
Follow the Cowgills LinkedIn page for our latest company updates.
BICS remains subject to the final legislation and operational guidance.
