BICS is a new government scheme that will cut electricity bills for UK manufacturers. If your business makes products and uses a fair amount of power, it could save you money. The scheme has moved past the consultation stage and is now being set up. It starts in 2027, but you will need to apply in 2026, so it is worth understanding now. Here is what BICS is, who can benefit, and what to do to get ready.

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What BICS does

BICS stands for the British Industrial Competitiveness Scheme. In plain terms, it takes some of the extra charges off your electricity bill. Every unit of power a business buys has a few government charges added on top of the energy itself. BICS removes three of them for firms that qualify: the Renewables Obligation, the Feed-in Tariff and the Capacity Market. Take those charges away and the bill comes down. The scheme goes live on 1 April 2027, but it counts electricity used from April 2026, so the savings reach back a year before it starts.

How much you could save

The government expects the saving to be around £35 to £40 for every MWh of electricity you use. For most sites that removes almost all of those three charges, which comes to roughly a quarter off the total bill. For a mid-sized manufacturer that can add up to tens of thousands of pounds a year, and for the biggest power users, far more.

Who can benefit

Three things decide it, and they are checked together.

In short, you need to use enough electricity, be in the right kind of business, and make the right kind of products. A lot of people think their SIC code alone settles it. It does not. The check looks at your SIC code and your HS codes together, so a business that assumes it is in, or out, can easily be wrong. If you are not certain, it is worth having someone check.

The dates that matter

The scheme starts in 2027, but the part that needs your attention comes sooner.

You can only apply during a short window in late 2026. It opens on 1 October 2026 and closes on 30 November 2026, so you have just two months. You should hear back in January 2027, and the scheme itself begins on 1 April 2027. Because the window is short and closes long before the scheme starts, anyone who waits until October to get their paperwork together will be in a rush.

How to get ready

None of this is difficult, but it is much easier if you start early. A few simple steps will put you in a good position:

You can find you MPAN here.

Start before the window opens

A few details of the scheme are still being finalised, so some things may change. That is a reason to start early, not a reason to wait. The businesses that do best will already know whether they qualify, what they need to send, and what to do next. If that is not clear for your site yet, now is a good time to find out.

If you want to know more about BICS, you can contact Purely Energy. For more information contact us on 0161 521 6300 or info@purelyenergy.co.uk