Published: September 23rd, 2026
If you run a manufacturing business in the Marches, a new government scheme could cut your electricity bill from 2027. The British Industrial Competitiveness Scheme (BICS) is designed to bring industrial electricity costs down for eligible manufacturers, and applications open on 1 October 2026.
This isn’t a general small business grant. It’s targeted support for manufacturers who meet specific sector and electricity-use criteria. Read on to find out exactly who qualifies.
What is BICS?
BICS was announced as part of the government’s Industrial Strategy to cut electricity costs for British manufacturers, strengthen competitiveness and protect skilled jobs. It works by exempting eligible businesses from the indirect costs of three existing schemes added to electricity bills:
- the Renewables Obligation (RO)
Together, these exemptions are worth up to £40 per megawatt hour (MWh), which could cut eligible bills by up to 25 per cent. Exemptions reach bills from April 2027 for RO and FiT, and from October 2027 for the Capacity Market. Businesses that qualify will also receive an additional payment in 2027, reflecting the support they would have received had the scheme already been running.
Who is this for?
To qualify for BICS, a business must meet all four of the following criteria.
1. Be registered at Companies House Sole traders and unregistered businesses cannot apply.
2. Operate in an eligible manufacturing sector BICS is aimed at two groups of manufacturers:
- Frontier industries within the Industrial Strategy’s priority growth sectors, such as advanced manufacturing, clean energy technologies, digital and technologies, defence and life sciences.
- Foundational industries that supply essential inputs to those frontier sectors, for example metals, chemicals, glass and ceramics.
Eligibility is defined precisely using 4-digit Standard Industrial Classification (SIC 2007) codes. Frontier sector SIC codes must show electricity intensity above 0.9%; foundational sector codes must show electricity intensity above 2.7%.
3. Manufacture an eligible product. What you actually produce at the site must also match a qualifying Harmonised System (HS) product code.
4. Use at least 33 MWh of grid-supplied electricity a year. This is measured per site, using electricity bought from the grid. If your business has a private network or private wire arrangement, different rules apply and you should check the government guidance directly.
Who this is not for
BICS will not apply to you if:
- you’re not a manufacturer (it doesn’t cover retail, hospitality, professional services or most other SME sectors)
- your SIC code isn’t on the published eligible list
- your site uses less than 33 MWh of grid electricity a year
- your business isn’t registered at Companies House
- your manufacturing site is outside Great Britain
If any of this applies to you, BICS isn’t the right route. Growth Hub advisers can talk through other energy support options available to Herefordshire, Shropshire and Telford & Wrekin businesses. Contact us here.
Key dates
Applications open on 1 October 2026 and close at 23:59, 30 November 2026
There is one application round a year, and applications cannot be amended once submitted.
How to check if you qualify, step by step
- Use the free GOV.UK eligibility checker. This gives an early indication of whether your business is likely to be eligible, based on your Companies House number, site postcodes, products manufactured (including HS codes if known) and annual grid electricity use. It’s quick to complete but doesn’t confirm final qualification.
- Read the published business guidance on GOV.UK to understand the evidence you’ll need to gather, including six months of electricity bills, Companies House details, MPANs and evidence of the products you manufacture.
- Gather your evidence early. Because applications can’t be amended after submission and there’s only one round a year, businesses that prepare early are in a much stronger position.
If you are looking for general energy advice for businesses please visit https://businessenergyefficiency.campaign.gov.uk/
