Rising energy prices have been one of the biggest challenges facing manufacturers in recent years. So, if you're looking for ways to improve margins without cutting investment or capacity, a new government scheme could be worth investigating.
The British Industrial Competitiveness Scheme (BICS) has been launched to help energy-intensive manufacturers reduce their electricity costs and remain competitive. For some businesses, the savings could be significant, with support worth up to £40 per megawatt hour of electricity used.
The scheme forms part of the Government's wider industrial strategy and is expected to support thousands of manufacturing businesses across Great Britain.
What is BICS?
In simple terms, BICS reduces some of the policy-related costs that are added to business electricity bills.
Successful applicants will receive relief from the indirect costs associated with schemes such as the Renewables Obligation, Feed-in Tariffs and Capacity Market charges. While that may sound technical, the outcome is straightforward: lower electricity costs for eligible manufacturers.
Who should take a look?
If you manufacture products and use a reasonable amount of electricity in the process, it's worth checking whether you qualify.
To be eligible, businesses must:
Be registered with Companies House
Operate in an eligible sector
Manufacture eligible products
Use at least 33 MWh of grid-supplied electricity each year at the manufacturing site
Applications are assessed at site level rather than company level, so businesses with multiple sites should review eligibility for each location.
Why act now?
Although support won't begin until April 2027, the application window is already open and closes at 11.59pm on 30 November 2026. Businesses only have one opportunity each year to apply, and applications cannot be amended once submitted, so it's worth giving yourself plenty of time to gather the required information.
The Government also plans to make a one-off payment in 2027 to reflect support businesses would have received had the scheme been in place earlier, providing an additional incentive to apply.
Getting started
The easiest first step is to use the online eligibility checker. It takes just a few minutes and can indicate whether your business is likely to qualify before you begin the full application process.
If the checker suggests you're eligible, you'll then need to review the guidance, gather supporting evidence and submit your application through the government portal.
Find out more
Manufacturers interested in the scheme can access the eligibility checker and full guidance through GOV.UK.
With energy costs continuing to put pressure on many businesses, BICS could provide a welcome boost for manufacturers looking to improve competitiveness, protect margins and invest for growth.
Need support? The Growth Hub team can help you identify funding, grants and business support opportunities available to your business, and signpost you to the right resources before you apply.