Manufacturers could cut electricity costs through new government scheme

Manufacturing businesses are being encouraged to check whether they could reduce their electricity costs through the new British Industrial Competitiveness Scheme (BICS).

Announced as part of the Industrial Strategy, the scheme is designed to cut electricity costs for eligible manufacturers in Great Britain, helping businesses strengthen their competitiveness. More than 10,000 businesses are expected to be eligible, with potential savings of up to £40 per MWh.

Eligible businesses will be exempt from the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market, with exemptions reaching electricity bills from April 2027. Businesses will also receive an additional payment in 2027 reflecting the support they would have received had the scheme been in operation earlier.

Who is eligible?

To qualify, a business must meet all four criteria:

  • Be registered at Companies House
  • Operate within an eligible sector
  • Manufacture eligible products at a site in Great Britain
  • Use at least 33 MWh of grid-supplied electricity per year at that site

Businesses can use the BICS eligibility checker to see whether they are likely to meet the criteria before applying.

When can businesses apply?

Applications are now open and must be submitted by 23:59 on 30 November 2026. There is one application round each year and applications cannot be amended once submitted, so businesses are encouraged to prepare carefully before applying.

Get ready to apply

Businesses considering applying should read the BICS business guidance to understand the eligibility and evidence requirements.

Applicants will need supporting evidence, including six consecutive months of electricity bills, information about their manufacturing activities and evidence relating to eligible products.

Check your eligibility

If your manufacturing business could be eligible, use the BICS eligibility checker to find out.

You can also visit the British Industrial Competitiveness Scheme collection on GOV.UK for the latest scheme information and guidance.

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