BICS update: a potential opportunity for UK metal manufacturers

The British Industrial Competitiveness Scheme (BICS) could represent a meaningful opportunity for qualifying UK manufacturers, particularly businesses operating in energy-intensive parts of the supply chain. 

What is the British Industrial Competitiveness Scheme (BICS)?

The scheme is proposed as part of the government’s wider Industrial Strategy. Its purpose is to reduce electricity costs for eligible manufacturers by exempting qualifying business activity from the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market. 

Which UK Metal Manufacturers Could Benefit from BICS?

For manufacturers in areas such as castings, forging, metal pressing, and metal treatment or coating, the latest BICS developments are especially worth watching. These activities sit within the types of foundational manufacturing capability that help supply wider growth sectors across the UK economy. 

However, being part of a relevant industry does not automatically mean a business will qualify. 

BICS eligibility is expected to depend on three broad tests: whether the business operates in a qualifying manufacturing industry; whether it carries out manufacturing activity; and whether it meets the required electricity-intensity threshold. For some businesses, this will involve matching both SIC codes and the HS codes of the products they manufacture. 

That makes accurate classification essential. A company may have a SIC code that does not fully reflect the range of products it makes, while another may produce eligible components alongside products that fall outside the scheme’s scope. In those cases, detailed records can make a real difference. 

How Manufacturers Can Prepare for BICS Ahead of 2027

Manufacturers should begin by reviewing their Companies House SIC code, mapping their product range and identifying supporting evidence. Useful material could include product specifications, sales records, production data, energy information and meter details. 

The government expects BICS to begin from April 2027, subject to legislation and subsidy-control processes. While final eligibility and application requirements will be confirmed separately, there is little value in waiting for every detail before getting organised. 

For businesses in the metal forming and wider manufacturing supply chain, now is the right time to understand their position, identify any gaps in the evidence and be ready to act when the scheme moves into delivery.