UK manufacturers have until 30 November 2026 to apply for new government support that could cut their electricity bills by up to 25%.
The British Industrial Competitiveness Scheme (BICS) opened for applications on 1 October 2026. It aims to help more than 10,000 manufacturing firms across England, Scotland and Wales.
Under the scheme, eligible firms could save around £35 to £40 per megawatt-hour (MWh). However, applications must be submitted by 11:59 pm on 30 November 2026.
Firms that miss this deadline risk losing the first year of support and an extra payment planned for 2027.
What Is the British Industrial Competitiveness Scheme?
BICS aims to help UK manufacturers deal with high electricity costs.
It offers relief from three charges included in business electricity bills:
- Renewables Obligation (RO)
- Feed-in Tariffs (FiT)
- Capacity Market (CM)
These charges help fund renewable energy and ensure a stable power supply.
The scheme does not cover the full electricity bill. Actual savings will depend on how much power a business uses for eligible work.
Which Manufacturers Can Apply for Electricity Support?
Not all manufacturing firms will qualify.
To apply, a business must be registered with Companies House. It must also operate in an approved sector under SIC codes and make eligible products listed under HS codes.
Each manufacturing site must use at least 33 MWh of grid electricity per year.
Government guidance also requires sites to show more than 16.5 MWh of electricity use over six months.
Firms that rent sites or share electricity meters may still qualify. However, they must provide records showing their share of electricity use.
How Much Electricity Cost Relief Can Firms Receive?
The level of support depends on how much grid electricity a site uses for eligible manufacturing.
The government has set three relief bands:
- 25% or less eligible for electricity use: No exemption.
- More than 25% but less than 50%: 50% exemption.
- 50% or more: 100% exemption.
These rates apply only to the three named electricity charges, not the whole bill.
Firms already using the British Industry Supercharger can also apply for BICS. However, they cannot claim the same relief twice for the same electricity use.
What Must Manufacturers Do Before 30 November?
Manufacturers should check their eligibility and prepare the required records now.
They must provide 6 consecutive months of electricity data from within the last 12 months.
Other key records include company details, SIC and HS codes, site addresses, meter numbers, and evidence of eligible production.
A business can apply for more than one site through a single application.
However, applications cannot be changed after submission. Missing or unclear records could lead to rejection.
When Will Manufacturers Receive Electricity Support?
The government expects to confirm eligibility decisions in early 2027.
Renewables Obligation and Feed-in Tariffs relief should begin in April 2027. Capacity Market relief is due to follow in October 2027.
Eligible firms applying this year are also expected to receive a one-off payment in 2027. This will reflect support for the period from April 2026 to March 2027.
Further payment details are still due, and the scheme remains subject to the required legislation.
How Can LANOP Help You Prepare for the BICS Deadline?
Missing the deadline could mean losing access to the first year of electricity cost support.
LANOP Business & Tax Advisors helps UK businesses review operating costs, manage cash flow and plan for financial changes.
Our accountants can help manufacturers assess how potential electricity savings may affect budgets, profits and future business plans. Speak with LANOP today to discuss your business finances and prepare for future cost changes.
