BICS is here: What is it and how does it work?
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Applications went live for the British Industrial Competitiveness Scheme (BICS) at the beginning of October. The new government initiative is expected to reach 10,000 businesses across the UK and give them exemptions from aspects of their energy bills. Here’s what you need to know about it.
What does BICS do?
BICS was announced by the government as part of the Industrial Strategy. It is designed to cut electricity costs for British manufacturers, with the view of strengthening competitiveness and protecting skilled jobs.
Eligible businesses will be exempted from the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market, savings that could be worth up to £40 per MWh, with exemptions reaching bills from April 2027. These eligible businesses will also receive an additional payment in 2027 to reflect the support businesses would have received had the scheme been in operation earlier.
Who is eligible for BICS?
BICS is targeting manufacturers in the Industrial Strategy growth sectors; these are advanced manufacturing, clean energy, defence, digital & technologies and life sciences. It is also for the foundational industries that support these sectors; these are chemicals, composites, critical minerals, materials, steel and electricity networks.
In addition, to qualify, a business must be registered at Companies House; operate in an eligible sector; manufacture eligible products at a site in Great Britain; and use at least 33 MWh of grid-supplied electricity a year at that site.
How do applications work?
Getting started is straightforward. The government has produced an eligibility checker, where you can see whether your business is likely to be eligible. Although do note that the checker does not guarantee eligibility.
You can then take a look at the business guidance to understand evidence requirements. Once you are ready to apply, this can be done through the government portal. Applications are open until 23:59 on 30 November 2026.
When will I find out more?
The government will confirm eligibility for businesses in January 2027. Exemptions from Renewables Obligation and Feed-in Tariffs will then be applied to bills from April 2027. Exemption from Capacity Market will begin from October 2027. In addition, eligible businesses will receive a payment in 2027, reflecting support that would have been received if the scheme had started earlier.
If you need more information, the government’s Department for Business, Innovation, Science & Trade (BIST) is hosting a webinar on 17 November.
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