Could BICS cut your electricity costs by up to 4p/kWh?

The British Industrial Competitiveness Scheme — or BICS — is a new government initiative designed to reduce electricity costs for thousands of manufacturing businesses across Great Britain.

From 2027, eligible manufacturers could save an estimated £35–£40 per MWh of electricity used — equivalent to around 3.5–4p/kWh — potentially reducing their total electricity bill by up to 25%.

At Enexus Energy, we’re helping businesses understand whether they may qualify and what they need to do next.

What is BICS?

BICS will provide eligible manufacturers with relief from three policy-related costs currently included within electricity bills:

• Renewables Obligation
• Feed-in Tariffs
• Capacity Market costs

The relief will be applied to the proportion of a site’s grid electricity used to manufacture eligible products. Depending on that proportion, a business may receive a 50% or 100% exemption from the applicable BICS policy costs.

This is not a discount on every part of the electricity bill, but for energy-intensive manufacturers it could still represent a substantial saving.

What could BICS be worth?

The government estimates that eligible businesses could save approximately £35–£40/MWh — equivalent to 3.5–4p/kWh.

As a simple illustration, an eligible site using 1,000 MWh — or 1,000,000 kWh — of grid electricity each year could potentially save around £35,000–£40,000 annually.

The actual benefit will depend on the site’s electricity consumption, qualifying manufacturing activity and the proportion of electricity used to make eligible products.

Could your business qualify?

A business may qualify if it:

• is registered with Companies House;
• has an eligible SIC code recorded at Companies House;
• manufactures an eligible product at a site in England, Scotland or Wales; and
• uses at least 33 MWh — 33,000 kWh — of grid electricity per manufacturing site each year.

There is also a six-month consumption test of more than 16.5 MWh — 16,500 kWh — which may be used where a full year of information is not available.

Eligibility is assessed at site level, so a business with several locations may have some sites that qualify and others that do not.

A SIC-code match is only the starting point

Your Companies House SIC code is an important part of the assessment, but it does not confirm eligibility on its own.

You must also manufacture a product included within the government’s eligible product list. Products are identified using six-digit Harmonised System — or HS — commodity codes.

Equally, not seeing an obvious SIC-code match does not necessarily mean the conversation is over. Companies House records do not always fully reflect a business’s current activities, and you will know your products and manufacturing operations better than anyone.

Any SIC information used in an application must, however, accurately represent the business’s genuine activities.

How is the relief calculated?

The level of relief depends on how much of the site’s grid electricity is used for eligible manufacturing:

• 25% or less: no BICS exemption
• More than 25% but less than 50%: 50% exemption from the applicable BICS policy costs
• 50% or more: 100% exemption from the applicable BICS policy costs

Businesses will need suitable evidence to support how electricity is used at each site.

When can businesses apply?

Applications are expected to open on 1 October 2026 and close at 11:59pm on 30 November 2026.

Successful applicants are expected to receive relief from:

• April 2027 for Renewables Obligation and Feed-in Tariff costs; and
• October 2027 for Capacity Market costs.

The scheme is expected to run for five years, subject to the required declarations and reviews.

What information might you need?

The precise evidence will depend on the business and site, but applicants should be prepared to provide information such as:

• Companies House details and registered SIC codes;
• the products manufactured and their relevant HS codes;
• annual or recent site electricity consumption;
• electricity invoices or meter data;
• evidence showing the proportion of electricity used for eligible manufacturing; and
• information about shared meters, landlords or private electricity networks where applicable.

Only one application can be submitted for each legal entity in an application year, although it can cover multiple qualifying sites. Applications cannot be amended once submitted, so it is important to check the details and supporting evidence carefully.

How Enexus Energy can help

We are carrying out preliminary checks for our clients using their Companies House information and published SIC-code eligibility.

That gives us a useful starting point, but it is not a final eligibility decision. Establishing whether a business can benefit may also require a closer look at the products it manufactures, its site electricity use and the supporting evidence available.

If we believe you may qualify, we’ll let you know and explain the next steps.

If our initial checks suggest you are unlikely to qualify — but you manufacture a product that you believe may be eligible, or your registered SIC codes do not properly reflect your current activities — we would still encourage you to speak to us.

Think your business could benefit?

With potential savings of around 3.5–4p/kWh, BICS is an opportunity that qualifying manufacturers should not overlook.

Talk to Enexus Energy and we’ll help you review the initial criteria, identify what information may be needed and prepare for the application window.

Get in touch with your Enexus Energy contact to request an initial BICS review.

This information is based on published government guidance and is intended as a general overview. Eligibility and savings are not guaranteed and will depend on the circumstances of each business and manufacturing site.