The British Industrial Competitiveness Scheme (BICS) - savings from 2027
What is BICS
BICS is a Department for Business, Innovation, Science and Trade (BIST) scheme to help sectors facing international competition where energy costs directly affect competitiveness.
The scheme will provide electricity cost reduction for up to 10,000 manufacturers with a value of of around £500 million a year. BICS sectors covering a wide range of manufacturing (including fibre optic cables; aircraft and spacecraft) are listed at this List of eligible sectors with annual electricity consumption ranges.
How the Scheme works
Applications must be completed by 30th November 2026. Successful applicants receive savings from April 2027 for five years.
Eligibility for BICS is by site on the basis of economic sector (SIC code see link above) and product type (HIS commodity code). It works by exemption from renewables-related levies (renewables obligation, feed-in tariffs, and capacity market) worth up to £40 per MWh (4p per kWh) – so a saving of up to around 20% of electricity costs. Sites that are successful in the narrow window for applications (October and November this year) will get savings from April next year for five years with annual checks.
How will it affect the rest of the energy market
Other businesses will not face higher electricity bills as a result of the scheme – also households will not be affected. BICS will be funded through a combination of energy system changes, the removal of Carbon Price Support from April 2028, and Exchequer funding.
The information in this Native-Hue energy management briefing should be verified before use for compliance purposes.