British Industrial Competitiveness Scheme (BICS): Is Your Manufacturing Business Missing Out on Lower Electricity Costs?

Manufacturers across Great Britain could benefit from significant reductions in electricity costs through the Government’s new British Industrial Competitiveness Scheme (BICS). But with the application deadline fast approaching, businesses need to understand the eligibility requirements and, importantly, get their paperwork in order.

If your business operates in manufacturing, this is something worth investigating sooner rather than later.

What is the British Industrial Competitiveness Scheme?

The British Industrial Competitiveness Scheme (BICS) is a Government initiative designed to help eligible UK manufacturing businesses become more competitive by reducing some of the policy costs included in their electricity bills.

The scheme provides exemptions from three electricity policy costs:

• Renewables Obligation (RO).
• Feed-in Tariffs (FIT).
• Capacity Market (CM).

For eligible businesses, these exemptions could make a meaningful difference to electricity costs, helping manufacturers manage overheads, protect margins and remain competitive.

The scheme applies to eligible manufacturing sites in England, Scotland and Wales.

Important: The application deadline is 30 November 2026

Applications opened on 1 October 2026, and the first application window closes at:

11.59pm on Monday 30 November 2026.

This is an important deadline. Applications must be completed carefully, as the Government guidance confirms that once submitted, applications cannot be amended.

Businesses can make one application per legal entity each year, covering multiple eligible manufacturing sites.

Leaving the application until the last minute could create unnecessary problems, particularly if you need to establish product classifications, gather supporting evidence or clarify electricity consumption across different sites.

The HS Code challenge: Is your product eligible?

One of the more complicated aspects of the BICS application is establishing whether the products your business manufactures qualify.

Eligibility is determined partly by reference to Harmonised System (HS) codes.

HS codes are internationally recognised numerical classifications used to identify products, most commonly in international trade and customs.

For BICS purposes, the Government uses six-digit HS codes to determine whether manufactured products fall within the eligible categories.

This is where manufacturers need to take particular care.

You may already use commodity codes for importing or exporting goods, but simply having an existing code does not automatically mean your products qualify for BICS.

There are several potential complications:

• Different products, different codes: Manufacturers producing a range of products may need to establish the correct HS code for each individual product.
• Similar products, different classifications: Products that appear very similar can fall under different classifications depending on their composition, construction, function or intended use.
• Existing commodity codes: Businesses using eight- or ten-digit commodity codes for international trade need to identify the relevant first six digits.
• Manufacturing processes: Where a process contributes to the production of an eligible product, the HS code of the finished product should be used when determining eligibility.
• Mixed manufacturing: Businesses producing both eligible and ineligible products will need to establish what proportion of their electricity consumption relates to eligible manufacturing activities.

The Government has published an eligibility list, but the descriptions are summaries and must be interpreted in line with the relevant UK Trade Tariff classifications.

Getting this wrong could mean missing out on support or submitting an application that cannot be properly verified.

What else do manufacturers need to demonstrate?

HS codes are only one part of the application.

To qualify, businesses must also satisfy other criteria, including:

• Operating within an eligible manufacturing sector, identified through the relevant Standard Industrial Classification (SIC) codes.
• Manufacturing at least one eligible product at the site.
• Consuming at least 33 MWh of grid-supplied electricity annually at each manufacturing site.
• Providing evidence of eligible manufacturing activity over six consecutive months.
• Providing electricity consumption evidence covering six consecutive months.

Where a site manufactures both eligible and ineligible products, the proportion of electricity used for eligible manufacturing will also need to be established.

The exemption level is determined using the Government’s pro-rating methodology. Depending on the proportion of electricity used for eligible activities, the site may qualify for a 50% or 100% exemption, or no exemption.

There may also be additional requirements where businesses share electricity meters, operate across multiple sites or receive electricity through a landlord or third-party arrangement.

This is why preparing an application can be considerably more involved than simply completing an online form.

Don’t leave it too late

The Government has made an eligibility checker and detailed application guidance available to help businesses establish whether they are likely to qualify.

However, identifying the correct HS codes, checking SIC classifications and gathering the required supporting information can take time.

I would encourage manufacturers to start reviewing their position now, particularly if they manufacture multiple products or operate from several sites.

Even if you already have your electricity contracts in place, it is worth checking whether your business could benefit from the scheme.

How Utilinet can help

At Utilinet Ltd, we understand that managing business energy costs is about much more than simply finding a cheaper electricity rate.

We work with manufacturers and multi-site businesses across the UK, helping them understand their energy requirements, manage complex contracts and identify opportunities to reduce costs.

If you are a manufacturer considering an application under the British Industrial Competitiveness Scheme, we would be happy to have a conversation.

We can help you review your existing electricity arrangements, understand the energy information required and work through the practical considerations involved in preparing for an application.

We are completely independent and not tied to any particular energy supplier. Our approach is to understand what matters to your business and find the right solution.

Don’t miss the opportunity to reduce your electricity costs. The BICS application deadline is 30 November 2026.

Contact Utilinet Ltd today:

📞 07810 717 304

✉️ dawn@utilinet-yorkshire.co.uk

🌐 www.utilinet-yorkshire.co.uk

Utilinet Ltd – Independent business energy advice, procurement and ongoing support.