The British Industrial Competitiveness Scheme (BICS) could reduce electricity costs by up to 25% for around 10,000 UK businesses, according to the government. Is yours one of them?
Energy-intensive industries have faced significant energy cost volatility in recent years, making budgeting and long-term planning more difficult.
BICS won't remove the uncertainty of global energy markets, but it will reduce electricity bills for eligible manufacturers by exempting them from the indirect costs of three government electricity schemes.
Applications are open until 11:59pm on 30th November 2026. If your business could qualify, it's important to understand the requirements and apply before the deadline.
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The British Industrial Competitiveness Scheme (BICS) is a government-backed energy support scheme designed to cut energy bills for eligible businesses.
Those businesses will be exempt from the indirect costs of three electricity schemes:
Electricity suppliers pass the costs of these schemes on to customers through their bills.
BICS removes the relevant indirect costs for eligible businesses.
British industrial energy prices are the highest in the developed world, 63% above the international median, according to a report by the Institute of Economic Affairs.
High electricity prices can make it harder for UK manufacturers to compete internationally, invest in their operations and plan for the future.
BICS won't reduce the wholesale price of electricity, which continues to be influenced by global energy markets. Instead, it reduces the policy costs passed on to eligible businesses through their electricity bills.
On GOV.UK, the Government states: "By reducing electricity costs for eligible businesses, BICS will strengthen our industrial competitiveness, encourage investment and support high-quality manufacturing jobs across Great Britain."
More than 10,000 businesses in various manufacturing industries could be eligible to receive BICS, but support is not applied automatically. You must apply for it.
Eligible businesses must make themselves known by the deadline, 30th November 2026, to qualify for the scheme.
Eligibility depends on four criteria. Companies must:
Meeting these four criteria doesn't automatically guarantee the full exemption. The government also assesses how much electricity is used for eligible manufacturing activities at each site to determine the level of support available.
Read our full guide to BICS eligibility for more detail or check whether your business is eligible for BICS on GOV.UK.
BICS could save eligible businesses up to £40 per megawatt-hour (MWh) of electricity, potentially reducing electricity bills by up to 25%.
However, the actual saving will depend on how much grid electricity a site uses for eligible manufacturing activities and the level of exemption it receives.
The government expects the scheme to save eligible businesses around £600 million collectively.
Businesses must submit an application to the government before 11:59pm on 30 November 2026.
Applications can be submitted online or by post using the government's offline application form.
Before applying, you can use the government's eligibility checker to get an initial indication of whether your business is likely to qualify. You'll still need to submit a separate application for the government to assess your eligibility.
You'll need to provide information about your company, manufacturing sites, electricity consumption and the products you make.
This includes your Companies House details, site MPANs, electricity bills covering six consecutive months and supporting evidence of eligible manufacturing activity.
Business energy is complex. We get it. We can support you.
Troo exists to help businesses make sense of their energy needs, whether you're exploring BICS or reviewing your wider energy arrangements, our team can help you understand your options.
We are not here to sell you a quick fix. We're here to understand what matters to you, offer clear advice, and take ownership of the hard parts, so energy becomes one less thing to worry about.
Book a free energy health check today for practical advice on business electricity, gas and water procurement, renewable consultancy and our ongoing management services.