British Industrial Competitiveness Scheme (BICS) 2027

Melissa Porter from GLX sits at a table in front of her laptop with a coffee in her left hand and a pen in her right hand poised over a GLX notepad.

If your business operates in the manufacturing sector, you may recently have received a letter from the Department for Business, Innovation, Science and Trade regarding the British Industrial Competitiveness Scheme (BICS).

The new Government scheme could significantly reduce electricity costs for eligible businesses from April 2027, but receiving a letter doesn’t automatically mean that your business qualifies.

So, what is BICS, who could benefit, and what should you do if you’ve received a letter?

What is the British Industrial Competitiveness Scheme?

The British Industrial Competitiveness Scheme (BICS) is a Government scheme designed to reduce electricity costs for eligible manufacturing businesses within growth sectors identified in the UK’s Industrial Strategy.

From April 2027, eligible businesses will receive exemptions from three levies that currently form part of their electricity bills.

The Government expects the scheme to benefit more than 10,000 businesses, with electricity costs potentially reduced by up to £40 per megawatt hour, which, according to the letter, could represent a saving of up to 25% of their electricity bill.

Could there be an additional payment?

Yes. Eligible businesses are also expected to receive an additional payment during 2027, approximately equivalent to an extra year’s benefit under the scheme.

For businesses with substantial electricity costs, the combined support could therefore be significant.

I’ve received a BICS letter, does that mean I’m eligible?

Not necessarily, as the Government is contacting businesses it has identified as being potentially eligible for BICS.

However, the letter specifically states that this does not guarantee eligibility and that businesses will still need to make a full application to the scheme.

If you have received a letter, it’s certainly worth checking whether your business meets the requirements.

How can businesses check their eligibility?

The Government has published an online eligibility checker which businesses can use ahead of the application window.

It’s worth doing this sooner rather than later, particularly if you’ve received a letter, so that you can understand whether your business may qualify and prepare for the application process.

Check your eligibility for the British Industrial Competitiveness Scheme

When do BICS applications open?

Applications are expected to open at the beginning of October 2026 and will close at 23:59 on 30th November 2026.

With the potential savings available from April 2027, businesses that believe they may qualify should make sure these dates are on their radar.

What should you do next?

If you’ve received a BICS letter, check your potential eligibility, familiarise yourself with the scheme and make sure you’re prepared to apply once applications open.

For eligible manufacturing businesses, a reduction of up to 25% in electricity costs could make a meaningful difference – particularly for businesses where energy represents a significant overhead.

If you’ve received a letter about the British Industrial Competitiveness Scheme and would like to discuss what the potential savings could mean for your business, get in touch with the GLX team.