Manufacturers across Great Britain can now apply for significant relief on their electricity costs as the British Industrial Competitiveness Scheme (BICS) officially opened for applications on 1 October 2026.
The new initiative, managed by the Department for Energy Security and Net Zero (DESNZ), is designed to help more than 10,000 energy-intensive businesses remain competitive on the global stage. By streamlining several previous relief measures into a single framework, the scheme aims to reduce the “indirect costs” associated with green energy levies that typically inflate industrial electricity bills.
Under the BICS framework, eligible companies can claim relief from costs related to the Renewables Obligation and Feed-in Tariffs. These levies are often cited by industry bodies as a primary reason why UK manufacturing energy costs have historically remained higher than those of international competitors.
Eligibility and Energy Intensity
The scheme is specifically targeted at businesses operating within energy-intensive sectors. This includes, but is not limited to, manufacturers of steel, chemicals, glass, and paper. To qualify for the relief, a business must demonstrate an “energy intensity” of at least 20%.
Prospective applicants are required to use specific Standard Industrial Classification (SIC) codes to verify their sector’s eligibility. According to Business Live, the support is aimed at mitigating the high cost of electricity rather than providing a direct cash grant for general energy usage.
While the scheme is open to large-scale industrial plants, smaller businesses (SMEs) that meet the strict 20% energy intensity threshold and fall within the eligible SIC codes are also encouraged to apply.
Application Deadlines and Process
The government has confirmed that the application window is now open via the GOV.UK portal.
For businesses already receiving support under the previous Energy Intensive Industries (EII) exemption, the transition to BICS is a critical step. DESNZ has provided a sector-eligibility tool and comprehensive guidance documents on its website to assist firms in determining if they need to submit a new application or if their existing status will be automatically transitioned under the new framework.
Once an application is approved, the reductions are typically applied to energy statements through the business’s electricity supplier. Manufacturers are advised to review the guidance early to ensure all necessary financial and energy consumption data is prepared.