Reduce your electricity costs with BICS
BICS launches April 2027 and removes key electricity levies for qualifying UK manufacturers. Applications open 1 October 2026. You get one application. It cannot be amended after submission. ESG Power manages the full process to make sure it is right before it goes in.
Do you qualify?
Applications are now open
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BICS Eligibility Checker
A 5-minute self-check
Do you qualify for BICS?
Answer a few quick questions about your site and operations. We'll use your answers to prepare for a conversation about whether the British Industrial Competitiveness Scheme is worth pursuing for your business.
- Takes less than 5 minutes
- No details required, just selections
- We'll review your answers on a call
25%
Reduction in electricity bills
10,000+
Eligible UK manufacturers
£600m
Total scheme value per year
IMPORTANT NOTE: You only get one application. No amendments.
The Government has confirmed there will be no dialogue with applicants during assessment. DBT determines eligibility from what was submitted, and once an application is in, it cannot be changed. There is one application per legal entity per year. A single manufacturing group with multiple sites submits once, covering all of them. Incomplete evidence, inconsistent data, or an incorrect electricity calculation results in rejection with no opportunity to correct it. This is not a form-filling exercise. It is a technical evidence case that needs to be correct before it goes anywhere near the submission portal.
Applications open 1 October 2026 and close 30 November 2026. With 10,000+ companies expected to apply and relief backdated to April 2026, getting ahead now makes a real difference.
What is BICS?
A government scheme to reduce electricity costs for UK manufacturers
The British Industrial Competitiveness Scheme removes the indirect cost of three electricity levies (the Renewables Obligation, Feed-in Tariffs, and the Capacity Market) from qualifying manufacturers' bills. It was announced in April 2026 and is designed to bring British industrial electricity costs in line with European competitors.
In Their Words
“Bring industrial electricity costs more closely in line with those in other European economies.”
How it works in one sentence: BICS removes the indirect cost of three non-commodity levies from the electricity bills of manufacturers that operate in a defined list of sectors and make a defined list of products, in proportion to how much of their electricity is used for that qualifying activity.
Who Can Apply
Is your business eligible for BICS?
You can apply for BICS if your business meets the following criteria. Eligibility is confirmed using SIC codes and HS product codes. Two separate tests that both need to be satisfied.
Minimum electricity consumption
Your site must consume at least 33 MWh of grid-imported electricity annually, evidenced by six consecutive months of bills showing more than 16.5 MWh. On-site solar, CHP, wind, and other behind-the-meter generation must be excluded from this figure. Only grid-imported electricity counts.
SIC code registered at Companies House
At least one eligible SIC code must be recorded at Companies House before you apply. If your current codes do not reflect your genuine manufacturing activities, they can be updated by filing a confirmation statement. But any SIC code changed within the previous six months may attract additional scrutiny during assessment.
Landlord-supplied electricity is not an automatic disqualifier. If you pay your landlord or a third party for electricity, you can still qualify provided you can evidence your consumption and how usage is allocated. ESG Power can advise on the specific documentation required.
How Relief Works
Relief is assessed site by site
The exemption you receive depends on the share of electricity used for manufacturing eligible products at each site.
25% or less
No relief
No relief. A site must use more than 25% of its electricity for eligible manufacturing to receive any exemption. Exactly 25% does not qualify.
More than 25%, below 50%
50% exemption
Half of the qualifying levies removed from your electricity bill.
50% or more
100% exemption
Full relief from RO, FiT and Capacity Market charges on your bill.
What counts as eligible manufacturing electricity?
More than you might think. Electricity supporting eligible manufacturing activity can include HVAC, lighting, compressed air, chillers, IT and control systems, forklifts and material handling, testing equipment, production EV charging, corporate offices, repairs, interim storage, and R&D, provided those activities support the eligible manufacturing at that site. For a site that only makes eligible products, the Government says it will normally receive a 100% exemption, subject to verification.
No submetering? That is not a problem.
If your site does not have submetering, you can estimate electricity consumption using average machinery data, production records, or other reasonable proxy methods. The methodology must be explained and evidenced. ESG Power builds bespoke electricity apportionment models for exactly this situation. It is one of the most technically valuable parts of what we do.
What You Will Need
The Evidence Requirements Are Specific
BICS is not a self-declaration scheme. Every eligibility claim must be evidenced. The Government has published detailed guidance on what is and is not acceptable. The bar is higher than many businesses expect.
Six months of electricity bills
The most recent six consecutive months of electricity bills available within the previous 12 months. Bills must show more than 16.5 MWh of grid-imported electricity over that period. On-site generation must be excluded.
Six months of manufacturing evidence
ERP or SAP production records, production logs showing what was manufactured, dates and quantities, and quality control records linked to production batches. Sales invoices and purchase notes are specifically not accepted as evidence that manufacturing activity occurred.
SIC and HS code documentation
Evidence that your business genuinely operates under an eligible SIC code and manufactures products falling under an eligible HS code. Both tests must be satisfied independently. Where a manufacturing process contributes to the production of an eligible product (such as coating or treating a component) the HS code of the resulting product can be used.
Because applications cannot be amended after submission, the evidence pack must be complete, consistent, and correct before anything goes in. ESG Power prepares and reviews the full evidence pack as part of our application management service.
Key Dates
The BICS timeline
From scheme design to live savings, here's when each milestone is expected to land.
Scheme design confirmed. SIC/HS code list published.
Legislation & applications expected to open.
Scheme goes live. RO & FiT exemptions begin.
Capacity Market exemption begins.
How We Help
Support at every step of your BICS journey
The Government has confirmed that applications may be submitted by a third party consultant on behalf of a business. ESG Power manages the full process. From initial eligibility assessment through to evidence preparation, application submission, and supplier implementation. You do not need to interact with the submission portal at all.
Learn More
Frequently Asked Questions
The scheme is open to manufacturers in key industries like advanced manufacturing, clean energy, defence, digital and technologies, life sciences, chemicals, steel and critical minerals.
Eligible businesses can cut their electricity bills by up to 25%. Your saving depends on how much of your power goes towards qualifying manufacturing.
BICS currently applies to Great Britain. A Northern Ireland version is being developed, with details and timings still to be confirmed.
The first application window runs from 1 October to 30 November 2026. Relief goes live in April 2027 and is backdated to April 2026 for successful applicants.