Manufacturers could cut their electricity bills by 20% from April 2027
A new government scheme will remove three policy charges from manufacturers’ electricity bills from April 2027. Most SMEs that make things qualify. Applications close on 30 November.
If you make things in the UK, there is a good chance a new government scheme can take around 20% off your electricity bill from next April. It is called the British Industrial Competitiveness Scheme, or BICS, and it is the biggest change to industrial electricity costs in years.
What the scheme does
BICS removes three policy charges from the bills of eligible manufacturers. These are the Renewables Obligation, the Feed in Tariff and the Capacity Market. You will have seen them buried in your bill, or rolled up into your unit rate if you are on a fully fixed contract. Together they are worth roughly £35 to £53 for every MWh you use. For most manufacturers that is about a fifth of the total bill.
There is also a one off credit in 2027 that covers the year from April 2026. So the first year is effectively worth double. Once a business is in the scheme, it stays in for five years.
Who qualifies
This is where BICS is different from the older EII scheme. EII only helps the heaviest users like steel, chemicals and glass, and it comes with a hard financial test that most manufacturers fail. BICS was designed for everyone else.
You are likely to qualify if you tick three boxes.
- You manufacture in Great Britain and your SIC code is on the government list. The list has 85 codes and covers metal fabrication, machining, plastics, food and drink, chemicals, printing, textiles, paper and the automotive and aerospace supply chain among others.
- You make a product that is on the government product list.
- Your site uses at least 33 MWh a year from the grid. That is a fairly low bar. Most workshops with a few machines will be well over it.
There is no size test. Small firms qualify. If you rent a unit on an industrial estate and buy your electricity through the landlord, you can still qualify.
The saving is banded by how much of the site’s electricity goes on eligible products. Half or more gets the full exemption. Between a quarter and a half gets 50%.
Why you need to act now
The first application window opens on 1 October and closes on 30 November. There is no mid year entry. If you miss the window you wait until April 2028, and the backdated credit for 2026 to 2027 is lost. For a business using 500 MWh a year that is around £20,000 gone.
What you need to check your contract
One thing catches people out. The saving only reaches you if your supplier strips the charges out of your bill. If you are on a fully fixed contract that runs past April 2027, the policy costs may already be baked into your unit rate. Before you renew anything for 2027, make sure the RO, FiT and Capacity Market elements are shown separately or passed through, and get your supplier to confirm in writing how they will handle BICS.
How we can help
We check whether you qualify by running your SIC code and products against the government lists. We put a pounds figure on the saving from your actual consumption. We prepare and submit the application under a Letter of Authority and deal with any queries. And we make sure the saving actually lands on your bill.
The eligibility check is free and takes a day. All we need is your company number and a line on what you make.
Call us on 01670 333330 or email help@intelligentgas.co.uk. Applications close on 30 November.