The British Industrial Competitiveness Scheme (BICS) could be one of the biggest changes to industrial electricity costs in decades.

Designed to address the long-standing challenge of high UK industrial electricity prices, the scheme aims to improve the competitiveness of UK manufacturers by reducing electricity costs and supporting long-term investment and growth.

For eligible businesses, the savings could be significant, making it important to understand how the scheme works and what steps can be taken now to prepare.

What Is the British Industrial Competitiveness Scheme?

The British Industrial Competitiveness Scheme is a new Government initiative designed to reduce electricity costs for eligible UK manufacturers operating within key industrial sectors.

From April 2027, qualifying businesses may receive support expected to be worth up to £35–£40 per MWh, equivalent to a reduction of up to 25% in electricity costs.

The scheme is intended to help UK manufacturers compete more effectively with international markets by lowering operating costs, improving budget certainty and freeing up capital for investment.

Why Has BICS Been Introduced?

For many years, UK manufacturers have faced higher electricity costs than competitors in other major economies.

Energy-intensive industries have consistently identified energy costs as a barrier to growth, investment and competitiveness.

BICS forms part of the Government’s wider industrial strategy and is designed to strengthen UK manufacturing by reducing electricity costs for strategically important sectors.

Who Could Benefit?

The scheme is expected to support eligible UK manufacturers operating within Frontier and Foundational sectors.

Eligibility is expected to be determined based on:

• Standard Industrial Classification (SIC) codes
• Product classifications using Harmonised System (HS) codes
• Electricity intensity
• Eligible manufacturing activities

Final eligibility criteria are yet to be confirmed, and businesses will need to meet all requirements once the application process opens.

Examples of sectors expected to benefit include:

• Advanced manufacturing
• Automotive
• Aerospace
• Electronics
• Chemicals
• Life sciences
• Clean energy technologies
• Foundational manufacturing

What Support Could Businesses Receive?

The Government has indicated that qualifying businesses could receive support worth up to £35–£40 per MWh, reducing electricity costs by as much as 25%.

Potential benefits include:

• Lower electricity costs
• Improved competitiveness
• Greater budget certainty
• Increased confidence for long-term investment planning

For businesses with significant electricity consumption, these savings could have a substantial impact on operating costs.

Key Dates to Know

While applications are not yet open, businesses should be aware of the following milestones:

• April 2027: The scheme is expected to commence, subject to legislation and implementation.
• 2027: Eligible businesses may receive a backdated support payment reflecting savings from April 2026.
• 2030: A formal review of the scheme is expected.
• 2035: The scheme is currently expected to run until this date.

Why Businesses Should Start Preparing Now

Although the application process has not yet opened, manufacturers can take steps today to assess their likely eligibility and prepare for the scheme.

Early preparation can help businesses:

• Understand whether they are likely to qualify
• Review SIC and HS classifications
• Assess electricity consumption and site eligibility
• Estimate potential savings
• Build future cost reductions into budgets and procurement strategies
• Ensure they are ready when applications become available

How Enexus Can Help

At Enexus Energy, we are already helping manufacturers prepare for BICS by providing:

• Initial eligibility reviews: Assessing SIC codes and manufacturing activities
• Product assessments: Identifying potentially qualifying products and sectors
• Site and consumption analysis: Reviewing sites, MPANs and electricity usage
• Application support: Helping businesses prepare for and navigate the application process when it opens
• Ongoing energy optimisation: Supporting long-term energy savings beyond BICS

While BICS has the potential to deliver significant cost reductions, it should form part of a wider energy strategy that considers procurement, consumption patterns and market risk.

Get Prepared Now

Applications for the British Industrial Competitiveness Scheme are not yet open, but early preparation can help your business understand its likely eligibility and be ready when the scheme becomes available.

The British Industrial Competitiveness Scheme could be one of the biggest changes to industrial electricity costs in years.

If you would like to understand more about how BICS could affect your business, assess your likely eligibility or discuss your wider energy strategy, get in touch with the Enexus Energy team today.