Rising electricity costs have long been a challenge for UK manufacturers, particularly those operating in energy‑intensive sectors. The British Industrial Competitiveness Scheme (BICS) is the government’s latest intervention designed to address this issue and support the long‑term competitiveness of strategic manufacturing industries.
Launching from April 2027, BICS will exempt eligible businesses from paying the indirect electricity costs associated with three levies: the Renewables Obligation (RO), Feed‑in Tariffs (FIT) and later the Capacity Market (CM). For qualifying sites, this could represent a significant and ongoing reduction in electricity bills.
Who is eligible?
Eligibility for BICS is tightly defined. The scheme targets two groups:
- Manufacturing frontier industries aligned with the government’s Industrial Strategy growth sectors (such as advanced manufacturing, clean energy technologies, vehicles, aerospace and life sciences).
- Manufacturing foundational industries that supply critical inputs to those frontier industries, including chemicals, metals, glass, ceramics and cement.
Eligibility is assessed using SIC codes, combined with an electricity‑intensity threshold applied at sector level. In addition, businesses must manufacture specific eligible products, defined separately using HS6 (globally recognised) product codes.
How the support works
BICS is applied site‑by‑site, with exemptions pro‑rated based on the proportion of electricity used for eligible manufacturing activity. Sites where less than 25% of electricity consumption relates to eligible production will not qualify, while those above this threshold may receive partial or full exemptions.
What should businesses do now?
Although BICS exemptions will not appear on bills until 2027, businesses should begin preparing now. Confirming SIC classifications, understanding site‑level electricity use, and mapping eligible production activities will be essential to maximise future benefits.
For many manufacturers, BICS presents a valuable opportunity, but navigating eligibility and evidence requirements will be key. Expert energy advice can make the difference between missing out and unlocking meaningful cost savings.
For further information and advice about your eligibility give the team at Here’s the Plan a call
01738 474630
