BICS update: Five changes manufacturers need to know
The Government has published its response to the latest consultation on the British Industrial Competitiveness Scheme (BICS), confirming several important changes ahead of the scheme's launch.
The overall objective of BICS remains the same: reducing electricity costs for eligible manufacturers. However, the latest announcement provides greater clarity on how the scheme will work in practice and introduces some important changes businesses should be aware of.
Here’s What’s changed
1. More manufacturing businesses could now qualify
One of the most significant updates is the addition of four SIC codes and nine HS product codes to the list of eligible activities.
The newly added SIC codes are:
2453 – Casting of light metals
2454 – Casting of other non-ferrous metals
2550 – Forging, pressing, stamping and roll-forming of metal; powder metallurgy
2561 – Treatment and coating of metals
The Government has confirmed this is now the final list of eligible activities and does not intend to make further changes ahead of the scheme launching.
What this means
If your business operates in one of these sectors, or has previously assumed it wouldn't qualify, it's worth reviewing your eligibility again.
2. The application window is shorter than originally expected
The application timetable has now been confirmed, and manufacturers will have less time than originally anticipated to submit their applications.
The key dates are:
1 October to 30 November 2026 – Application window open for two months.
October 2026 to January 2027 – Government assesses applications and confirms eligibility.
With just two months to apply, businesses should avoid leaving preparations until the autumn.
What this means
Start gathering the information you'll need now, including energy consumption data and evidence of eligible manufacturing activities.
3. Missing the deadline doesn't mean missing out forever
The Government has confirmed that businesses can still apply in future years if they miss the first application window.
However, businesses cannot join the scheme part-way through a delivery year. Instead, successful applications will take effect from the start of the next scheme year:
April for Renewables Obligation (RO) and Feed-in Tariff (FiT) exemptions.
October for Capacity Market exemptions.
What this means
Delaying an application could mean waiting many months before your business receives any benefit. Applying during the first window gives you the earliest possible access to the scheme.
4. More detail has been provided on the one-off payment
The Government has confirmed that the additional payment for the 2026-27 period is expected to be delivered through businesses' existing electricity suppliers as a bill credit.
Importantly, suppliers will receive funding from Government in advance, reducing concerns around payment delays.
The payment will also be based on a Government-set average methodology, rather than being calculated to the exact historical costs for every individual business.
What this means
Eligible businesses should receive support through a straightforward billing mechanism, making the process simpler and quicker to administer.
5. BICS is moving from policy to implementation
Perhaps the biggest takeaway from this latest announcement is that the Government is no longer consulting on whether BICS should happen. It is now confirming how the scheme will operate.
For manufacturers, the focus should now shift from following policy announcements to preparing for the application process.
Our thoughts
The latest update provides much greater certainty for manufacturers.
We now have confirmation of the final eligible manufacturing activities, a defined application window and more detail on how businesses will receive financial support.
With applications opening in October this year, now is the time to understand whether your business is likely to qualify, review your energy strategy and start preparing the information you'll need to apply.
Businesses that prepare early are likely to be in the strongest position when the scheme goes live.
Complimentary Initial BICS Eligibility Review
If you're unsure whether the British Industrial Competitiveness Scheme applies to your business, our Initial BICS Eligibility Review is designed to provide clarity.
We'll help you understand whether it is worth progressing before you invest significant time and resource into the process.
What's included?
Review of your SIC codes
Review of relevant HS codes
Initial assessment of your energy consumption profile
High-level eligibility assessment
Guidance on likely next steps
You'll leave with a clearer understanding of:
Whether your business may be eligible for BICS
The potential scale of the opportunity
What evidence would be required
The likely complexity of the application process
Whether a full submission is worth pursuing