The first application window for the British Industrial Competitiveness Scheme (BICS) is now open, giving eligible UK manufacturers the opportunity to apply for support to reduce their electricity costs.
Applications are open from 1 October to 30 November 2026.
For manufacturers that may qualify, now is the time to confirm eligibility, gather the required evidence and prepare an application.
What Is BICS?
BICS is a government scheme designed to reduce electricity costs for eligible manufacturing businesses in Great Britain.
Eligible businesses will receive exemptions from costs associated with:
- Renewables Obligation (RO).
- Feed-in Tariffs (FiT).
- Capacity Market (CM).
The scheme is expected to support more than 10,000 businesses across eligible manufacturing sectors (Read more here).
Who Is Eligible?
Businesses must meet the government’s eligibility criteria, including:
- Being registered with Companies House.
- Operating within an eligible industry, identified by SIC code.
- Manufacturing eligible products, identified by HS code.
- Meeting the minimum grid-imported electricity consumption requirement.
The government has published an online eligibility checker to help businesses establish whether they are likely to qualify.
Where a site carries out a mixture of eligible and non-eligible activities, the level of support may depend on the proportion of electricity used for eligible manufacturing.
The First BICS Application Window
The first application window runs from 1 October to 30 November 2026, with eligibility decisions expected in January 2027.
Businesses should allow sufficient time to gather the information and evidence needed to support their application. This may include details of manufacturing activities, electricity consumption, products, sites and relevant electricity meters.
Applications are made directly through the GOV.UK BICS application process.
When Will BICS Support Begin?
For businesses approved through the first application window, exemptions will begin in stages:
- April 2027: Renewables Obligation and Feed-in Tariffs exemptions.
- October 2027: Capacity Market exemption.
Eligible businesses are also expected to receive a one-off payment during the first half of 2027, covering support relating to the period while BICS was being established in 2026.
Once eligibility has been confirmed, the government will provide relevant information to electricity suppliers so the appropriate exemptions can be applied.
How Long Does BICS Eligibility Last?
BICS eligibility will generally remain valid for five years, subject to ongoing checks.
Businesses will need to complete annual declarations confirming that relevant information remains accurate, alongside a more detailed eligibility review in year two. They will also need to report material changes that could affect their eligibility.
What Should Manufacturers Do Now?
With the first application window now open, manufacturers that believe they may qualify should:
- Check their eligibility against the government’s SIC and HS code requirements.
- Confirm their electricity consumption meets the scheme threshold.
- Gather the evidence required for their manufacturing sites.
- Submit their application before 30 November 2026.
For eligible manufacturers, BICS could provide a valuable reduction in electricity costs. Preparing early will help businesses understand the requirements and ensure they are ready to submit within the first application window.
Utility Stream can help businesses understand BICS, what it could mean for their energy costs and the steps they should be considering as the scheme is introduced.
Speak to our team to find out more.
