Skip to main contentBICS, the British Industrial Competitiveness Scheme, is designed to give relief for electricity costs for UK manufacturers. It is part of the UK Government’s Modern Industrial Strategy which paves the way for targeted support in the UK’s highest potential growth sectors.
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.
Between 2008 and 2020, UK electricity prices rose by nearly 50%, contributing to reduced investment in manufacturing and job losses.
For electricity-intensive sectors, BICS represents a significant opportunity to lower operating costs, improve international competitiveness and reinvest in productivity and sustainability initiatives.
What is new about the scheme?
Unlike existing energy compensation schemes, BICS is broader in scope and reaches sectors that may not previously have received government compensation or exemptions.
It is expected that eligibility testing will be less stringent than current schemes such as the Energy Intensive Industries (EII) scheme, opening support to businesses that may have previously missed out.
Other support for UK Manufacturing
BICS launches in 2027, but some business may already qualify for other schemes.
The Energy Intensive Industries (EII) scheme allows some businesses to receive up to 100% exemption on eligible electricity costs across RO, FiT, CfD, CM, RAB (Regulated Asset Base charges) and the EII support levy. These exemptions apply immediately once approved. NCC (Network Charging Compensation charges) compensation also rises to 90% in April 2026. BICS presents a valuable future opportunity, but EII can deliver larger savings immediately for qualifying businesses.
Exemptions cannot be duplicated, meaning that businesses can only gain exemption through one scheme. That makes it essential to asses your eligibility now, rather than waiting until 2027. For companies that will only qualify for BICS, early preparation will be key. Ensure you are ready to secure savings as soon as the scheme opens.
Envantage can support both routes: identifying immediate EII opportunities and preparing your business for BICS compliance.
Which sectors fall under IS-8?
To be considered for BICS, 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 threshold levels are yet to confirmed following a consultation process.
What are the next steps?
The BICS scheme is expected to launch from April 2027, following consultation on eligibility thresholds and final design. It is a good time for businesses in eligible sectors to start preparing and exploring their options.
If you would like support understanding the scheme and eligibility, please get in touch.
We have created a BICS Forum Group, giving access to the latest updates as the scheme develops, as well as free eligibility checks for BICS and other schemes. Join for free by completing the form below.
Join the British Industry Competitiveness Scheme (BICS) Forum group
“When market electricity prices climbed to unprecedented levels in December 2021, had we not worked in partnership with Envantage on a risk-managed approach to energy purchasing, we would have been subject to an additional exposure of £8.9 million in just one year of increased electricity prices.”
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