{"id":4301,"date":"2026-10-08T16:20:00","date_gmt":"2026-10-08T15:20:00","guid":{"rendered":"https:\/\/fundingfunnel.co.uk\/bits-and-bytes\/bics-manufacturing-electricity-costs\/"},"modified":"2026-10-08T17:34:00","modified_gmt":"2026-10-08T16:34:00","slug":"bics-manufacturing-electricity-costs","status":"publish","type":"page","link":"https:\/\/fundingfunnel.co.uk\/es\/bits-and-bytes\/bics-manufacturing-electricity-costs\/","title":{"rendered":"Could your business cut electricity costs by up to 25%?"},"content":{"rendered":"<h1>UK manufacturers: could your business cut electricity costs by up to 25%?<\/h1>\n<p>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. <a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\" target=\"_blank\" rel=\"noopener noreferrer\">BICS business guidance<\/a><\/p>\n<p>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. <a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\/british-industrial-competitiveness-scheme-guidance-for-applicants\" target=\"_blank\" rel=\"noopener noreferrer\">BICS guidance for applicants<\/a><\/p>\n<section data-bics-carousel=\"true\" role=\"region\" aria-label=\"BICS report image carousel\" style=\"margin:2rem auto;max-width:1120px;text-align:center\">\n<style>#bics-carousel-track{scrollbar-width:none;-ms-overflow-style:none}#bics-carousel-track::-webkit-scrollbar{display:none}#bics-carousel-track .bics-slide-nav{display:none!important}#bics-carousel-track figure:target .bics-slide-nav{display:flex!important}#bics-carousel-track:not(:has(figure:target)) #bics-slide-1 .bics-slide-nav{display:flex!important}<\/style>\n<h2>Explore the BICS report<\/h2>\n<p>Swipe through the report pages or use the arrows.<\/p>\n<div id=\"bics-carousel-track\" style=\"display:flex;gap:12px;overflow-x:auto;overflow-y:hidden;padding:12px 8px 20px;scroll-snap-type:x mandatory;scroll-behavior:smooth;-webkit-overflow-scrolling:touch;overscroll-behavior-x:contain\">\n<figure id=\"bics-slide-1\" data-bics-slide=\"1\" style=\"position:relative;flex:0 0 clamp(230px,42vw,470px);width:clamp(230px,42vw,470px);aspect-ratio:4\/5;margin:0;scroll-snap-align:start;scroll-margin-inline-start:8px;background:#fff;border:1px solid #ddd;border-radius:8px;box-shadow:0 6px 18px rgba(0,0,0,.14);overflow:hidden\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/fundingfunnel.co.uk\/wp-content\/uploads\/2026\/10\/BICS-2026-report-cover.png?w=1300&#038;ssl=1\" alt=\"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.\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" loading=\"lazy\"><\/p>\n<div class=\"bics-slide-nav\" style=\"display:none;position:absolute;left:0;right:0;top:50%;justify-content:space-between;padding:0 10px;transform:translateY(-50%)\"><a href=\"#bics-slide-5\" aria-label=\"Previous report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u2039<\/a><a href=\"#bics-slide-2\" aria-label=\"Next report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u203a<\/a><\/div>\n<p><span aria-label=\"Page 1 of 5\" style=\"position:absolute;left:50%;bottom:10px;transform:translateX(-50%);background:rgba(6,27,55,.9);color:#fff;padding:.3rem .7rem;border-radius:16px;font:600 14px sans-serif\">1 \/ 5<\/span><\/figure>\n<figure id=\"bics-slide-2\" data-bics-slide=\"2\" style=\"position:relative;flex:0 0 clamp(230px,42vw,470px);width:clamp(230px,42vw,470px);aspect-ratio:4\/5;margin:0;scroll-snap-align:start;scroll-margin-inline-start:8px;background:#fff;border:1px solid #ddd;border-radius:8px;box-shadow:0 6px 18px rgba(0,0,0,.14);overflow:hidden\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/fundingfunnel.co.uk\/wp-content\/uploads\/2026\/10\/BICS-eligibility-checks.png?w=1300&#038;ssl=1\" alt=\"BICS eligibility summary covering company registration, a Great Britain manufacturing site, eligible products and at least 33 MWh of annual grid electricity.\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" loading=\"lazy\"><\/p>\n<div class=\"bics-slide-nav\" style=\"display:none;position:absolute;left:0;right:0;top:50%;justify-content:space-between;padding:0 10px;transform:translateY(-50%)\"><a href=\"#bics-slide-1\" aria-label=\"Previous report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u2039<\/a><a href=\"#bics-slide-3\" aria-label=\"Next report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u203a<\/a><\/div>\n<p><span aria-label=\"Page 2 of 5\" style=\"position:absolute;left:50%;bottom:10px;transform:translateX(-50%);background:rgba(6,27,55,.9);color:#fff;padding:.3rem .7rem;border-radius:16px;font:600 14px sans-serif\">2 \/ 5<\/span><\/figure>\n<figure id=\"bics-slide-3\" data-bics-slide=\"3\" style=\"position:relative;flex:0 0 clamp(230px,42vw,470px);width:clamp(230px,42vw,470px);aspect-ratio:4\/5;margin:0;scroll-snap-align:start;scroll-margin-inline-start:8px;background:#fff;border:1px solid #ddd;border-radius:8px;box-shadow:0 6px 18px rgba(0,0,0,.14);overflow:hidden\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/fundingfunnel.co.uk\/wp-content\/uploads\/2026\/10\/BICS-application-submission.png?w=1300&#038;ssl=1\" alt=\"BICS application graphic warning that a submitted application cannot be amended and should not be left until the deadline.\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" loading=\"lazy\"><\/p>\n<div class=\"bics-slide-nav\" style=\"display:none;position:absolute;left:0;right:0;top:50%;justify-content:space-between;padding:0 10px;transform:translateY(-50%)\"><a href=\"#bics-slide-2\" aria-label=\"Previous report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u2039<\/a><a href=\"#bics-slide-4\" aria-label=\"Next report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u203a<\/a><\/div>\n<p><span aria-label=\"Page 3 of 5\" style=\"position:absolute;left:50%;bottom:10px;transform:translateX(-50%);background:rgba(6,27,55,.9);color:#fff;padding:.3rem .7rem;border-radius:16px;font:600 14px sans-serif\">3 \/ 5<\/span><\/figure>\n<figure id=\"bics-slide-4\" data-bics-slide=\"4\" style=\"position:relative;flex:0 0 clamp(230px,42vw,470px);width:clamp(230px,42vw,470px);aspect-ratio:4\/5;margin:0;scroll-snap-align:start;scroll-margin-inline-start:8px;background:#fff;border:1px solid #ddd;border-radius:8px;box-shadow:0 6px 18px rgba(0,0,0,.14);overflow:hidden\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/fundingfunnel.co.uk\/wp-content\/uploads\/2026\/10\/BICS-shared-electricity-supply.png?w=1300&#038;ssl=1\" alt=\"Industrial electricity meter graphic explaining that shared meters and landlord or third-party supplies do not automatically exclude a manufacturer from BICS.\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" loading=\"lazy\"><\/p>\n<div class=\"bics-slide-nav\" style=\"display:none;position:absolute;left:0;right:0;top:50%;justify-content:space-between;padding:0 10px;transform:translateY(-50%)\"><a href=\"#bics-slide-3\" aria-label=\"Previous report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u2039<\/a><a href=\"#bics-slide-5\" aria-label=\"Next report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u203a<\/a><\/div>\n<p><span aria-label=\"Page 4 of 5\" style=\"position:absolute;left:50%;bottom:10px;transform:translateX(-50%);background:rgba(6,27,55,.9);color:#fff;padding:.3rem .7rem;border-radius:16px;font:600 14px sans-serif\">4 \/ 5<\/span><\/figure>\n<figure id=\"bics-slide-5\" data-bics-slide=\"5\" style=\"position:relative;flex:0 0 clamp(230px,42vw,470px);width:clamp(230px,42vw,470px);aspect-ratio:4\/5;margin:0;scroll-snap-align:start;scroll-margin-inline-start:8px;background:#fff;border:1px solid #ddd;border-radius:8px;box-shadow:0 6px 18px rgba(0,0,0,.14);overflow:hidden\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/fundingfunnel.co.uk\/wp-content\/uploads\/2026\/10\/BICS-wider-electricity-checks.png?w=1300&#038;ssl=1\" alt=\"Checklist encouraging manufacturers reviewing BICS to also check contract timing, consumption, purchasing arrangements and bill charges.\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" style=\"display:block;width:100%;height:100%;object-fit:cover;border-radius:8px\" loading=\"lazy\"><\/p>\n<div class=\"bics-slide-nav\" style=\"display:none;position:absolute;left:0;right:0;top:50%;justify-content:space-between;padding:0 10px;transform:translateY(-50%)\"><a href=\"#bics-slide-4\" aria-label=\"Previous report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u2039<\/a><a href=\"#bics-slide-1\" aria-label=\"Next report page\" style=\"display:inline-flex;align-items:center;justify-content:center;width:44px;height:44px;border-radius:50%;background:rgba(6,27,55,.9);color:#fff;font-size:28px;text-decoration:none;box-shadow:0 2px 10px rgba(0,0,0,.3)\">\u203a<\/a><\/div>\n<p><span aria-label=\"Page 5 of 5\" style=\"position:absolute;left:50%;bottom:10px;transform:translateX(-50%);background:rgba(6,27,55,.9);color:#fff;padding:.3rem .7rem;border-radius:16px;font:600 14px sans-serif\">5 \/ 5<\/span><\/figure>\n<\/div>\n<\/section>\n<h2>What BICS actually offers<\/h2>\n<p>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&#8217;s grid electricity relates to eligible manufacturing activity. <a href=\"https:\/\/www.gov.uk\/government\/news\/applications-open-for-scheme-to-slash-electricity-bills-for-over-10000-manufacturers\" target=\"_blank\" rel=\"noopener noreferrer\">Government announcement, 1 October 2026<\/a><\/p>\n<p>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. <a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\" target=\"_blank\" rel=\"noopener noreferrer\">BICS business guidance<\/a><\/p>\n<h2>Four things determine whether it is worth checking<\/h2>\n<p>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.<\/p>\n<p>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. <a href=\"https:\/\/www.gov.uk\/government\/publications\/eligibility-for-the-british-industrial-competitiveness-scheme\" target=\"_blank\" rel=\"noopener noreferrer\">BICS eligibility guidance<\/a><\/p>\n<p>The <a href=\"https:\/\/check-eligibility-for-bics.service.gov.uk\/check\" target=\"_blank\" rel=\"noopener noreferrer\">official BICS eligibility checker<\/a> 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.<\/p>\n<h2>One application. No amendments.<\/h2>\n<p>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. <a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\/british-industrial-competitiveness-scheme-guidance-for-applicants\" target=\"_blank\" rel=\"noopener noreferrer\">BICS guidance for applicants<\/a><\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<h2>Shared meter or landlord supply? Do not assume you are excluded<\/h2>\n<p>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. <a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\/annex-c-british-industrial-competitiveness-scheme-further-guidance-for-landlords-and-other-third-parties\" target=\"_blank\" rel=\"noopener noreferrer\">BICS Annex C: landlords and other third parties<\/a><\/p>\n<p>Shared-meter applications may require evidence showing the manufacturer&#8217;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&#8217;s bill, the financial benefit is expected to be passed to the eligible manufacturer. Private-network and private-wire arrangements require separate checking.<\/p>\n<h2>If the electricity bills are already on the desk, check the rest too<\/h2>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>There is also a separate VAT question. HM Revenue &#038; 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&#8217;s existing qualifying-use rules. <a href=\"https:\/\/www.gov.uk\/government\/publications\/temporary-zero-rate-of-vat-for-domestic-electricity-in-great-britain\" target=\"_blank\" rel=\"noopener noreferrer\">HMRC temporary zero rate<\/a> <a href=\"https:\/\/www.gov.uk\/guidance\/vat-on-fuel-and-power-notice-70119\" target=\"_blank\" rel=\"noopener noreferrer\">VAT Notice 701\/19<\/a><\/p>\n<h2>Get free, practical help before you submit<\/h2>\n<p>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.<\/p>\n<p>FundingFunnel does not determine BICS eligibility. Government does. The official government guidance and application route remain the controlling sources.<\/p>\n<p>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.<\/p>\n<p><a href=\"https:\/\/api.leadconnectorhq.com\/widget\/form\/lw2Z04p9X2tbZWIvO4pN\" class=\"button\">Get free initial help<\/a><\/p>\n<h2>Sources and references<\/h2>\n<p>Research cut-off: 3 October 2026.<\/p>\n<ol>\n<li><a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\/british-industrial-competitiveness-scheme-guidance-for-applicants\" target=\"_blank\" rel=\"noopener noreferrer\">BICS guidance for applicants<\/a><\/li>\n<li><a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\" target=\"_blank\" rel=\"noopener noreferrer\">BICS business guidance<\/a><\/li>\n<li><a href=\"https:\/\/www.gov.uk\/government\/news\/applications-open-for-scheme-to-slash-electricity-bills-for-over-10000-manufacturers\" target=\"_blank\" rel=\"noopener noreferrer\">Applications open for scheme to slash electricity bills for over 10,000 manufacturers<\/a><\/li>\n<li><a href=\"https:\/\/www.gov.uk\/government\/publications\/eligibility-for-the-british-industrial-competitiveness-scheme\" target=\"_blank\" rel=\"noopener noreferrer\">Eligibility for the British Industrial Competitiveness Scheme<\/a><\/li>\n<li><a href=\"https:\/\/check-eligibility-for-bics.service.gov.uk\/check\" target=\"_blank\" rel=\"noopener noreferrer\">Official BICS eligibility checker<\/a><\/li>\n<li><a href=\"https:\/\/www.gov.uk\/government\/publications\/british-industrial-competitiveness-scheme-business-guidance\/annex-c-british-industrial-competitiveness-scheme-further-guidance-for-landlords-and-other-third-parties\" target=\"_blank\" rel=\"noopener noreferrer\">Annex C: landlords and other third parties<\/a><\/li>\n<li><a href=\"https:\/\/www.gov.uk\/government\/publications\/temporary-zero-rate-of-vat-for-domestic-electricity-in-great-britain\" target=\"_blank\" rel=\"noopener noreferrer\">Temporary zero rate of VAT for domestic electricity in Great Britain<\/a><\/li>\n<li><a href=\"https:\/\/www.gov.uk\/guidance\/vat-on-fuel-and-power-notice-70119\" target=\"_blank\" rel=\"noopener noreferrer\">VAT Notice 701\/19: Fuel and power<\/a><\/li>\n<\/ol>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"Article\",\"headline\":\"Could your business cut electricity costs by up to 25%?\",\"description\":\"A practical guide for UK manufacturers checking BICS eligibility, electricity-use thresholds, evidence requirements and the 30 November 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