What is BICS?
The British Industrial Competitiveness Scheme (BICS) is a government initiative for UK manufacturers, which will ultimately reduce their energy costs, specifically it will reduce the amount of green taxes that eligible businesses pay. With applications time-sensitive, it is important that you do apply as soon as you can, as businesses that fail to apply before the deadline could miss out on savings.
Who is eligible?
Any business that meets the criteria for an eligible SIC code can apply. A published list of eligible SIC codes are available, alongside a much longer list of HS codes, which identify the products a business deals with. To qualify for the discount, businesses must demonstrate that they have both an eligible SIC code and a qualifying HS code.
Which businesses will benefit?
The scheme is focused on key UK manufacturing sectors, but because there are so many supporting manufacturers across these industries, it can be difficult to categorise businesses into specific types. There has also been lobbying from various trade federations to ensure their sectors are included. For example, cast metals were not included initially but have since been added. Overall, the best approach is to cross-reference your business against the published list of eligible SIC codes.
How much could businesses save?
If a business were to receive a full exemption, the combined cost of these elements is around 3.5–4 p/kWh. This is a potential saving of £35,000–£40,000 for every million kWh consumed. The actual saving may be lower if the business does not receive the full discount, but this highlights the potential benefit for businesses that qualify for the full exemption.
What happens next?
The BICS application process opens on the 1st of October 2026, with businesses able to submit applications until the 30th of November 2026, leaving manufacturers with a limited window to get their applications in. Applicants will need to provide evidence demonstrating that they meet the scheme’s eligibility criteria, including information on their electricity use and relevant sites. With such a short application window to prepare, now is the time to start getting ready for BICS.