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Could your manufacturing business qualify for electricity cost relief?

Could your manufacturing business qualify for electricity cost relief?

Manufacturers looking to reduce electricity costs have until 30 November 2026 to apply for the British Industrial Competitiveness Scheme (BICS).

The government says the scheme could reduce eligible businesses’ electricity bills by up to 25% and support more than 10,000 manufacturers in Great Britain.

Who could qualify?

Eligibility depends on the company, its manufacturing activities and the products made at each site. The current guidance requires applicants to:

• Be registered on Companies House.

• Operate in an eligible manufacturing sector.

• Manufacture eligible products in England, Scotland or Wales.

• Use at least 33 megawatt-hours of grid-supplied electricity annually at the site being claimed for.

The official eligibility checker provides an initial indication. Final eligibility is determined through the full application.

When does support start?

The first application window closes at 11:59pm on 30 November 2026, with eligibility decisions expected in early 2027.

Relief is scheduled to begin in stages: exemptions relating to the Renewables Obligation and Feed-in Tariffs from April 2027, followed by the Capacity Market from October 2027.

What should manufacturers do now?

Start with the official guidance and eligibility checker. Then gather the required company information, site and meter details, electricity bills and evidence of the products manufactured.

Our view is that this is worth reviewing alongside wider plans to improve operating efficiency. A clear understanding of energy use can also help manufacturers prioritise the equipment, processes and projects that deserve closer attention.

Check eligibility: https://check-eligibility-for-bics.service.gov.uk/

Read the application guidance: https://www.gov.uk/government/publications/british-industrial-competitiveness-scheme-business-guidance/british-industrial-competitiveness-scheme-guidance-for-applicants

Start an application: https://apply-for-bics.service.gov.uk/

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