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BICS for eligible businesses
The British Industrial Competitiveness Scheme (BICS) is a new government initiative designed to improve the competitiveness of UK manufacturing by reducing electricity-related policy costs for eligible businesses. The scheme will provide support to qualifying manufacturers operating in priority industrial sectors and foundational industries, helping to offset some of the highest industrial electricity costs in Europe.
With applications opening from October 2026 and support commencing in 2027, now is the time to understand whether your business could qualify and what savings may be available.
At ARO, we help businesses navigate complex energy schemes, identify opportunities for cost reduction, and ensure they are fully prepared to benefit from available support.
What is BICS?
The British Industrial Competitiveness Scheme is a government support programme that will exempt eligible businesses from certain electricity policy costs, including:
- Renewables Obligation (RO)
- Feed-in Tariff (FiT)
- Capacity Market (CM) charges
For qualifying organisations, this could result in electricity cost savings of up to £40/MWh delivering substantial annual cost reductions for energy-intensive operations.
Unlike some existing schemes, eligibility is not determined solely by industry classification. Businesses must also demonstrate the proportion of electricity used in qualifying manufacturing activities at site level.
Could your business benefit from BICS?
The BICS scheme is expected to provide significant electricity cost relief for eligible UK manufacturers through exemptions on energy policy-related charges. The scheme is designed to support sectors that are critical to the UK's industrial growth and international competitiveness.
While eligibility may seem straightforward, many organisations will need to assess their manufacturing activities, energy usage, and sector classification to understand whether they qualify and what level of support they could receive.
ARO can help you assess your eligibility, identify potential savings opportunities, and prepare the evidence required to support an application.
Early preparation matters
Many organisations assume eligibility is simply a case of operating within the right sector. In reality, demonstrating qualifying electricity consumption often requires a much deeper assessment.
Accurate savings calculations may depend on:
- Site-level energy analysis
- Metering and consumption data
- Manufacturing process mapping
- Supporting documentation and evidence
- Ongoing compliance reporting
The difference between exemption bands could have a significant impact on the level of savings achieved, making early assessment essential.
How ARO can help
Our energy specialists work with manufacturing businesses to simplify complex energy schemes and ensure no opportunity is missed.
Eligibility Assessment
We'll review your operations, processes, products and industry classifications to determine whether BICS may apply to your organisation.
Consumption & Savings Analysis
Understanding qualifying electricity usage is critical. We can analyse your energy data to identify potential exemptions and estimate the financial benefits available.
Technical & Compliance Support
Our team can help you gather the information and supporting evidence required to support your application and maintain ongoing compliance.
Application Guidance
We'll guide you through the application process, helping you understand requirements, prepare documentation and respond to any queries.
Ongoing Energy Cost Management
BICS should form part of a broader energy strategy. Through our Energy Audits, we can also help you to:
- Strengthen long-term energy resilience
- Optimise energy procurement
- Improve energy efficiency
- Review bill accuracy
- Identify additional exemptions and support schemes
Our team can review your position against opportunities such as:
- Energy Intensive Industries (EII) Exemptions
- Climate Change Agreements (CCA)
- Levy exemption opportunities
- Energy efficiency and consumption reduction initiatives
A comprehensive review can help determine which route offers the greatest value for your business.
Speak to an Energy Specialist
At ARO, we understand that energy costs are more than just a line item on a bill. They impact competitiveness, investment decisions and long-term growth.
That's why we take a consultative approach, helping customers:
✓ Understand complex regulation and policy changes
✓ Identify available exemptions and support schemes
✓ Maximise energy cost savings
✓ Improve budget certainty
✓ Reduce operational risk
✓ Build a longer-term energy strategy
Our goal is simple: to help you reduce costs, remain compliant, and make informed decisions in a changing energy market.
Whether you're unsure about eligibility, want to understand the potential savings available, or need support preparing for the application window, ARO's energy experts are here to help.
Let's check your eligibility criteria for BICS
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BICS FAQs
01What is the British Industrial Competitiveness Scheme (BICS)?
The British Industrial Competitiveness Scheme (BICS) is a UK government initiative designed to reduce electricity costs for eligible manufacturers. The scheme will exempt qualifying businesses from certain electricity policy costs, including the Renewables Obligation (RO), Feed-in Tariff (FiT), and Capacity Market (CM) charges, helping UK industry remain competitive.
02How much could my business save through BICS?
Eligible organisations could reduce their electricity costs by up to £40/MWh through exemptions from qualifying policy charges. The actual savings will depend on your electricity consumption, manufacturing activities, and level of scheme eligibility.
03Who is eligible for BICS?
To qualify, businesses must generally:
- Be registered with Companies House.
- Operate in an eligible manufacturing sector.
- Manufacture eligible products.
- Meet the required electricity usage and intensity thresholds.
Eligibility is assessed using factors such as SIC codes, manufactured products, and site-level electricity consumption.
04When can businesses apply for BICS?
The first application window is expected to open in October 2026, with eligibility decisions anticipated in early 2027. Support is expected to begin from 2027, with exemptions being introduced in phases.
05Can ARO help us assess whether we qualify for BICS?
Yes. ARO can help review your energy consumption, assess potential eligibility, estimate possible savings, and support your preparation ahead of the application process. Our specialists can also help identify wider opportunities to improve energy efficiency and reduce costs.
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