UK manufacturers: could your business cut electricity costs by up to 25%?

The British Industrial Competitiveness Scheme, or BICS, is open for applications. For eligible manufacturing activity, the scheme is designed to reduce electricity costs by exempting qualifying electricity from the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market. Government guidance describes a potential electricity-bill reduction of up to 25%, but this is not a guaranteed flat discount and the actual percentage depends on the electricity price paid by the eligible business. BICS business guidance

Applications opened on 1 October 2026 and close at 11:59pm on 30 November 2026. Once an application has been submitted it cannot be amended, so the practical question is not simply whether a business has heard of BICS. It is whether the scheme could apply to its manufacturing sites and whether the necessary evidence has been checked before submission. BICS guidance for applicants

Explore the BICS report

Swipe through the report pages or use the arrows.

FundingFunnel BICS report cover for UK manufacturers, highlighting up to 25% potential electricity-bill reduction, the 30 November 2026 deadline and the no-amendment rule.

BICS eligibility summary covering company registration, a Great Britain manufacturing site, eligible products and at least 33 MWh of annual grid electricity.

BICS application graphic warning that a submitted application cannot be amended and should not be left until the deadline.

Industrial electricity meter graphic explaining that shared meters and landlord or third-party supplies do not automatically exclude a manufacturer from BICS.

Checklist encouraging manufacturers reviewing BICS to also check contract timing, consumption, purchasing arrangements and bill charges.

What BICS actually offers

BICS is intended to reduce electricity costs for eligible manufacturing activity. The Government says the potential bill reduction can be up to 25%, but the relief is not a blanket 25% discount. The percentage depends on the underlying electricity price paid by the business, and partial relief may apply where only part of a site’s grid electricity relates to eligible manufacturing activity. Government announcement, 1 October 2026

Applications opened on 1 October 2026 and close on 30 November 2026. Eligibility decisions are expected in January 2027. Renewables Obligation and Feed-in Tariff exemptions are due to begin in April 2027, with the Capacity Market exemption beginning in October 2027. BICS business guidance

Four things determine whether it is worth checking

Being a manufacturer is only the starting point. The scheme tests the business, the manufacturing sector, the product and the electricity used at the site.

A business should check whether it is registered at Companies House and operates in an eligible manufacturing sector, whether the manufacturing site is in Great Britain, whether it manufactures an eligible product identified by the relevant HS code, and whether the manufacturing site uses at least 33 MWh of grid-supplied electricity a year. BICS eligibility guidance

The official BICS eligibility checker is the sensible first route. It provides an initial indication only. Final eligibility is determined after a full application has been assessed by the Department for Business, Innovation, Science and Trade.

One application. No amendments.

The application requires more than a statement that the business manufactures an eligible product. The government checklist includes company, site, meter, bill, product and supporting evidence information. Once submitted, the application cannot be amended. Only one application may be made per legal entity in a year, although that application can cover multiple sites. BICS guidance for applicants

The information may include manufacturing-site details and relevant MPANs, the most recent six consecutive months of bills available within the previous 12 months, product details and supporting evidence, and additional evidence where there are shared meters, third-party supplies or mixed activity.

That makes BICS a poor candidate for a 30 November afternoon job. The deadline and the application rules create enough urgency without manufacturing any more.

Shared meter or landlord supply? Do not assume you are excluded

BICS has specific arrangements for third-party supplies and shared meters. An unusual electricity arrangement is a reason to check the guidance early, not a reason to stop checking. BICS Annex C: landlords and other third parties

Shared-meter applications may require evidence showing the manufacturer’s relevant share of electricity use. A landlord or third party may need to provide consumption or billing information. Where the exemption is applied to a third party’s bill, the financial benefit is expected to be passed to the eligible manufacturer. Private-network and private-wire arrangements require separate checking.

If the electricity bills are already on the desk, check the rest too

BICS is the immediate opportunity, but it is not the only useful question. Once the bills, consumption information and contract details are already in front of the business, it is sensible to understand the wider electricity position too.

Check when the current electricity contract ends, whether the business understands what it is consuming and paying for, whether the current purchasing arrangements are still appropriate, and whether there are charges on the bill that need explaining.

There is also a separate VAT question. HM Revenue & Customs introduced a temporary zero rate for qualifying supplies of electricity in Great Britain from 1 October 2026 to 31 March 2027. The relief is not a blanket zero rate for business electricity. Whether a supply qualifies depends on HMRC’s existing qualifying-use rules. HMRC temporary zero rate VAT Notice 701/19

Get free, practical help before you submit

FundingFunnel provides initial, no-charge support to help a manufacturer understand what needs to be in place before it submits a BICS application. That can include checking the information and evidence required, understanding how the site, product and electricity use fit the scheme, and spotting potential issues before submission.

FundingFunnel does not determine BICS eligibility. Government does. The official government guidance and application route remain the controlling sources.

If BICS might apply but the business wants a clearer picture of what needs checking before submission, that is a sensible point to speak to FundingFunnel.

Get free initial help

Sources and references

Research cut-off: 3 October 2026.