What is the BICS scheme?
The BICS scheme is the government’s British Industrial Competitiveness Scheme, a package to cut electricity costs for eligible manufacturers. Applications opened on 1 October 2026 and close on 30 November 2026, so the window is short.
According to the government, more than 10,000 manufacturing businesses across Great Britain may be eligible, and the scheme could cut their electricity bills by up to 25 percent. The Autumn Budget on 28 October 2026 backed the scheme again, and the Chancellor confirmed backdated payments for energy costs this year.
The BICS scheme works by exempting eligible businesses from the indirect costs of three existing electricity policies: the Renewables Obligation, Feed in Tariffs and the Capacity Market.
If you run a small manufacturing firm, this one is worth five minutes. The government says around 98 percent of all firms in the frontier sectors it is targeting are small and micro businesses.
Who can apply for the BICS scheme?
To be eligible for the BICS scheme, your business has to meet all four of the government’s criteria. Missing one means you cannot get through the online application.
- Your business is registered on Companies House.
- It operates in an eligible sector, based on the Standard Industrial Classification code registered at Companies House.
- It manufactures eligible products in Great Britain, as defined by Harmonised System codes.
- The manufacturing site uses at least 33 megawatt hours of grid supplied electricity a year.
Only electricity supplied from the grid counts towards that last test. If you are using six months of bills as evidence rather than a full year, the guidance sets the proxy at more than 16.5 megawatt hours over that period.
The scheme applies in Great Britain only, which means England, Scotland and Wales. Northern Ireland is outside it. The government says Northern Ireland will receive funding for a separate equivalent scheme, subject to a business case, so a Northern Irish manufacturer is not simply shut out but has nothing to apply for today.
The government points businesses to an online eligibility checker before they apply. It is the quickest way to see whether you are likely to qualify, and the guidance for applicants lists the eligible codes in full.
When is the BICS scheme deadline?
The BICS scheme deadline is 11:59pm on 30 November 2026. The government has said there is no chance to amend an application once it has been submitted, so it pays to get the details right the first time. You can make only one application per legal entity in a year, though a single application can cover several sites.
The government’s timeline for the first year looks like this:
- 1 October 2026: the application window opens.
- 30 November 2026: the window closes at 11:59pm.
- Early 2027: businesses receive their eligibility decision.
- April 2027: exemption from the Renewables Obligation and Feed in Tariff costs starts.
- October 2027: exemption from the Capacity Market costs starts as well.
One wrinkle worth knowing. The guidance gives “early 2027” in its timeline but says elsewhere that decisions will be confirmed in January. The two do not quite agree, so plan for a decision somewhere in the first few months of 2027 rather than a fixed date.
Those dates apply to the first year of the scheme only. The government also says businesses confirmed as eligible will receive an additional lump sum payment equivalent to around a year’s relief from the scheme, and that only businesses applying for BICS this year can access it. The guidance for applicants says the detail of that payment will follow in 2027, with no amounts published yet.
What to have ready before you apply
- A GOV.UK One Login for Businesses, or your passport or driving licence to set one up.
- Your Companies House registration number and company authentication code.
- Details of each Great Britain manufacturing site, including its Meter Point Administration Number (MPAN).
- Six consecutive months of electricity bills from the last 12 months for each site.
- Details of the products you make, with supporting evidence.
- Confirmation from your supplier if the site is on a private network.
How much could the BICS scheme save?
The government says the BICS scheme could cut eligible electricity bills by up to 25 percent. That is a ceiling, not a promise, and the government itself says the actual discount depends on each company’s underlying electricity price.
The scheme removes certain costs rather than applying a flat discount, so the effect on your bill will not be identical for every business. The relief for the Capacity Market part also starts six months later than the rest.
Cornwall Insight, the energy consultancy, listed two further business measures after the Budget: Climate Change Levy rates frozen for 2028, and the removal of Carbon Price Support from 2028. It set those alongside the BICS scheme as previously announced.
Treat all of these as estimates until you see an eligibility decision and a new bill. Our guide to business energy renewal checks shows what to look at on your own contract in the meantime.
What if your business does not qualify for the BICS scheme?
Most businesses will not qualify, and that is expected. The BICS scheme is aimed at manufacturers in specific sectors, so shops, offices, cafes and most other small firms are outside it.
That does not mean you are stuck with whatever your supplier offers. The part of your bill you can influence is the rate in your contract, and that is where comparing business electricity deals can make a difference. What you could save depends on your usage, your region and your contract end date.
This is the Do Nothing Default at work in business energy. It is easy to roll onto a more expensive rate because nobody checked the end date. Our guide to hidden business energy charges explains what else can sit on a bill, and our business energy grants guide covers other schemes worth checking.
Frequently asked questions about the BICS scheme
- What does BICS stand for?
- BICS stands for the British Industrial Competitiveness Scheme. It is a government scheme to reduce electricity costs for eligible manufacturers.
- When do BICS applications close?
- They close at 11:59pm on 30 November 2026. The government says applications cannot be amended once submitted.
- How much electricity do I need to use to qualify for the BICS scheme?
- The manufacturing site must use at least 33 megawatt hours of grid supplied electricity a year, according to the government guidance, or more than 16.5 megawatt hours over a six month evidence period.
- When would the BICS scheme savings start?
- Exemption from Renewables Obligation and Feed in Tariff costs is due to start in April 2027, and from Capacity Market costs in October 2027, if you are accepted.
- Does the BICS scheme cover Northern Ireland?
- No. It applies in Great Britain only. The government says Northern Ireland will get funding for a separate equivalent scheme, subject to a business case, so there is nothing to apply for there yet.
Sources
- GOV.UK, British Industrial Competitiveness Scheme: guidance for applicants, updated 12 October 2026. The 1 October and 30 November 11:59pm window, the four eligibility criteria, the 33 megawatt hour threshold and the 16.5 megawatt hour six month proxy, Great Britain only, the Renewables Obligation, Feed in Tariff and Capacity Market exemptions and their April 2027 and October 2027 start dates, the “early 2027” and “in January” decision wording, what to have ready, the one application per legal entity rule and the fact that applications cannot be amended.
- GOV.UK, Applications open for scheme to slash electricity bills for over 10,000 manufacturers, 1 October 2026. More than 10,000 businesses across Great Britain, the up to 25 percent figure and that the real discount depends on a company’s underlying electricity price, the 98 percent small and micro business share of the frontier sectors, the additional lump sum equivalent to around a year’s relief and the this year only condition, and the separate Northern Ireland funding.
- GOV.UK, Budget 2026 speech, 28 October 2026. The Chancellor’s confirmation of backdated payments for energy costs this year.
- Cornwall Insight, Response to the Autumn Budget, 28 October 2026. The Climate Change Levy freeze for 2028 and the removal of Carbon Price Support from 2028.
Checked 29 October 2026.
