BICS: Government announces electricity bill cuts for over 10,000 British manufacturers
On 16th April 2026, the UK Government confirmed electricity bill cuts for over 10,000 British manufacturers under the British Industrial Competitiveness Scheme (BICS), part of the Government's Modern Industrial Strategy which aims to increase stability, investment and long-term economic growth across 8 key sectors.
Due to take effect from April 2027, BICS is designed to reduce the significant electricity costs British manufacturers face; with eligible firms due to see cuts by up to 25%. It will do so by exempting eligible businesses from the indirect costs of 3 government-backed electricity schemes, worth around £35-40 per MWh:
- Renewables Obligation (RO): from April 2027
- Feed-in Tariffs (FIT): from April 2027
- Capacity Market (CM): from October 2027
The initiative intends to better align electricity costs with other European economies, hoping to boost the competitiveness and resilience of British manufacturing.
Who is eligible under BICS?
BICS will target manufacturing frontier industries within the Modern Industrial Strategy’s growth sectors (also known as IS-8) and manufacturing foundational industries.
Businesses must operate under one of the 80 eligible Standard Industrial Classification (SIC) codes which pass the electricity intensity test, and manufacture at least one eligible product defined by the Harmonised System (HS) codes. Businesses will be required to provide evidence of eligible products, with specification details due to be outlined in upcoming guidance.
The full list of eligible SIC and HS codes can be found here.
Businesses will be required to provide details of all Metering Point Administration Numbers (MPANs) related to their manufacturing site. Additionally, they will need to evidence the proportion of electricity consumed at the site relating to the manufacturing of an eligible product.
- There will be no exemption granted where less than 25% of electricity usage relates to eligible manufacturing.
- If 25%-50% of electricity usage relates to the manufacturing of an eligible product, 50% exemption from the relevant levy costs will be applied to all import MPANs on the site.
- Where 50% or more is affiliated with the manufacturing of an eligible product, 100% exemption will be applied.
When will BICS apply?
BICS will officially take effect from April 2027. Businesses are invited to apply for eligibility with the Department for Business and Trade (DBT) from 1st October 2026 to 30th November 2026.