More than 10,000 manufacturers across Great Britain can now apply for government support intended to reduce industrial electricity costs, as the application window opens for the British Industrial Competitiveness Scheme.
The scheme will exempt eligible businesses from some of the indirect costs attached to the Renewables Obligation, Feed-in Tariffs, and Capacity Market. The government estimates that the support could cut electricity bills for qualifying manufacturers by up to 25%, depending on their underlying electricity price and the proportion of activity that meets the eligibility rules.
Applications opened on 1 October and close at 11.59pm on 30 November. Businesses accepted into the first year are expected to receive confirmation in January 2027, with relief from Renewables Obligation and Feed-in Tariff costs beginning in April. Capacity Market exemptions are scheduled to follow from October 2027.
Business Secretary Jonathan Reynolds said: “We will reindustrialise Britain by tackling one of the biggest pressures facing manufacturers and cutting their electricity bills.”
The scheme covers manufacturing activities within sectors identified through the government’s industrial strategy, alongside foundational industries that supply or support them. Eligibility is assessed at site level and depends on both the products being manufactured and the electricity attributable to qualifying activity.
Small and micro businesses account for a substantial share of companies operating across the covered sectors. BICS is therefore expected to reach beyond the largest energy-intensive manufacturers already receiving targeted support through schemes such as the British Industry Supercharger.
Industrial electricity prices have remained a recurring concern for UK manufacturers competing with production facilities overseas. For businesses running energy-intensive machinery, refrigeration, furnaces, process equipment, or automated production lines, electricity can materially affect unit costs and the financial case for investing in additional capacity.
BICS removes selected policy-related charges rather than changing the wholesale price of electricity itself. Companies will therefore remain exposed to movements in underlying power prices, network charges, and other costs that sit outside the exemptions.
The level of support will also vary between individual sites. Government guidance says applicants must establish how much electricity is consumed by eligible manufacturing activity, rather than assuming that every unit used across a mixed-use site qualifies.
Businesses applying in the first year must provide supporting evidence covering the most recent six consecutive months available within the 12 months before submission. Electricity evidence for that six-month period is mandatory.
The guidance warns that incomplete, inconsistent, unclear, altered, or insufficient evidence can result in rejection. Applications cannot be amended after submission, increasing the importance of checking site data and manufacturing classifications before filing.
Companies accepted during the first application round will also qualify for an additional payment intended to approximate a year of support before the main exemptions are fully in place. Access to that payment is restricted to businesses applying in the current window.
The scheme opens as manufacturers continue to manage labour costs, financing conditions, transport disruption, trade requirements, and volatile input prices alongside energy expenditure. September’s manufacturing survey showed output and orders continuing to grow, but also recorded renewed increases in energy, transport, and material costs.
For businesses considering new plants, machinery, automation, or reshoring production, electricity remains one part of a wider cost comparison between Britain and competing locations. The government is using BICS to remove some of the policy costs embedded in that calculation without directly controlling the market price of power.
Potential applicants now have two months to establish whether their manufacturing activity qualifies, determine the eligible electricity share at each site, assemble the required evidence, and submit before the November deadline.
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