Skip to main contentThe UK government has published new information on the upcoming British Industrial Competitiveness Scheme (BICS), part of its long-term Industrial Strategy, designed to reduce electricity costs for eligible businesses from April 2027.
BICS sits alongside the previously announced measures within the British Industry Supercharger, and together these reforms aim to tackle the high electricity prices faced by UK industry, strengthen competitiveness, and support long-term investment.
What is BICS?
BICS is a new support scheme offering discounts of up to £40/MWh through exemptions from the Renewables Obligation (RO), Feed-in Tariff (FiT), and Capacity Market (CM) levies.
It is designed to support manufacturing businesses operating within the government’s IS-8 frontier sectors and key foundational industries that supply them.
Which sectors fall under IS-8?
The IS-8 sectors include:
- Advanced Manufacturing
- Clean Energy
- Defence
- Digital and Technologies
- Life Sciences
- Foundational manufacturing industries
These industries are recognised as critical to the UK’s long-term competitiveness and economic growth.
Who will be eligible?
To be considered for the British Industrial Competitiveness Scheme, a business must:
- Operate within an IS-8 frontier industry or a qualifying foundational industry
- Carry out manufacturing activity
- Meet the required electricity-intensity threshold (final levels will be consulted on)
Businesses already in receipt of the Energy Intensive Industries (EII) exemption scheme will not be eligible for BICS, as they already receive the exemption, and it cannot be duplicated.
When will BICS go live?
The scheme is expected to launch from April 2027, following consultation on eligibility thresholds and final design.
Why BICS matters for UK manufacturing
For many sectors, particularly those with high electricity use, BICS represents a significant opportunity to reduce operational costs, improve global competitiveness, and enable greater reinvestment in productivity and sustainability initiatives.
Envantage’s response and next steps
Envantage is already reviewing the government’s updated details and assessing what the scheme could mean for businesses across the manufacturing landscape.
We will be responding to the official consultation to help shape the scheme on behalf of UK industry. Our focus is to ensure:
- The eligibility criteria are fair and comprehensive
- Businesses that should qualify are represented
- The scheme delivers maximum benefit for those with genuine electricity-intensive operations
As part of this process, we will continue to monitor developments closely. Further updates will be shared as soon as the government confirms the final thresholds and guidance.
If you would like support understanding your potential eligibility or preparing for compliance once the scheme goes live, please contact our team at hello@envantage.co.uk.
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