BICS expanded to deliver lower electricity costs for businesses

Brook Green Supply welcomes the recent announcement provided by the Department for Business and Trade (DBT) regarding the British Industrial Competitiveness Scheme (BICS), a significant initiative aimed at reducing electricity costs for manufacturing firms across the UK.

22 April 2026, London: Following ongoing engagement with industry stakeholders, DBT has confirmed key elements of the scheme, which is expected to deliver around a 25% reduction in electricity bills for eligible businesses. The scheme will support more than 10,000 businesses – an increase from the originally proposed 7,000 – highlighting the Government’s broadened commitment to industrial competitiveness.

The scheme will launch on 1 April 2027, initially providing exemptions from Renewables Obligation (RO) and Feed-in Tariff (FiT) costs, with Capacity Market (CM) exemptions following from October 2027. Eligible businesses will also benefit from a one-off backdated payment in April 2027, covering the period from April 2026 to March 2027.

Based on current assumptions, BICS is expected to provide approximately £600 million in annual support, equating to £35–£40/MWh for eligible businesses. Importantly, the Government has confirmed this will be funded through a combination of Exchequer support and wider policy adjustments.

As a result, non-eligible businesses are not expected to see an increase in their bills, supported by measures such as the re-indexation of Renewables Obligation and Feed-in Tariff schemes from RPI to CPI and the planned removal of Carbon Price Support from 2028.

Who's eligible – and how it works

DBT has introduced changes to eligibility criteria, requiring businesses to meet both Standard Industrial Classification (SIC) and Harmonised System (HS) code requirements.

To qualify, businesses must:

• Have an eligible SIC code; and
• Manufacture an eligible product, as defined by HS6 codes

Electricity intensity testing has been applied at sector level by DBT, so businesses do not need to assess this themselves.

Exemptions will be applied at site level, based on the proportion of electricity used for eligible manufacturing:

• Less than 25%: no exemption
• 25%–50%: 50% exemption
• 50% or more: 100% exemption

An online eligibility checker is expected to be introduced to support businesses.

Timeline and key milestones

Participation in BICS will depend on meeting key deadlines within the application window. Businesses that miss the initial window will need to wait until the following year to access support, with eligibility lasting for two years once confirmed.

• Eligibility window: 1 October 2026 – 8 January 2027
• Confirmation of eligible businesses: by 14 January 2027
• Scheme go-live: 1 April 2027

 What happens next

• DBT will continue refining the scheme over the coming months, with some details still subject to consultation.
• An online eligibility checker will be introduced to help businesses quickly understand whether they may qualify.
• Businesses should begin reviewing SIC and HS code requirements ahead of the application window.
• Brook Green Supply will continue working closely with DBT and supporting customers throughout the rollout of the scheme.

Brook Green Supply will also support customers in assessing eligibility and understanding how the scheme may apply to their business. Where relevant, we’ll proactively flag potential eligibility, while still encouraging businesses to review the criteria independently and prepare ahead of the application window.

Richard Nicholls, Managing Director at Brook Green Supply, commented: “We welcome the Government’s commitment to supporting over 10,000 businesses through this scheme, particularly the decision to backdate support to April 2026 in light of recent wholesale market volatility.

It was also essential that this support did not come at the expense of non-eligible businesses, and we’re delighted that the Government has confirmed Exchequer funding. We look forward to continuing our collaboration with DBT and supporting our customers in accessing the benefits of the scheme.”

If you think your business may be eligible for support under BICS, we'd encourage you to speak to your account manager or contact our support team to explore next steps.