Blocked from BICS? There are other ways to take control of energy costs
The businesses ineligible for the British Industrial Competitiveness Scheme (BICS) are still vital to the economy and still suffering from high energy prices – so how can they get the help they need and not get left behind?
See a different approach to energy procurementWhat about us?
Eligible businesses are now busy applying to the British Industrial Competitiveness Scheme (BICS), with the potential to secure up to £40 per MWh off their energy bills starting from April 2027.
The scheme is part of the government’s Industrial Strategy and is explicitly targeted at manufacturers in the IS-8 group of eight high-growth sectors, as well as some further businesses in their supply chains. In all, it’s estimated that more than 10,000 businesses will be eligible. You can find out more about it in our BICS explainer.
But there are far more than 10,000 energy-intensive businesses that can be considered important – or even vital – to the UK economy. And those businesses are also suffering from high energy costs and uncertainty.
It’s understandable that ineligible but still energy-intensive businesses will be asking right now: what about us?
“It does seem to us a bit odd, when food is an everyday essential, that energy support is going into other sectors but not into the food system writ large.”
Beyond BICS: concentrate on commodity costs
BICS gives support by exempting eligible businesses from three specific policy costs in the energy bill. Policy costs are part of the non-commodity cost portion of the bill, which also includes things like network and infrastructure charges. Ofgem estimates these costs account for around 60% of business energy bills taken all together.
That still leaves 40% of the bill – this is the commodity cost portion, and where a business’s energy procurement strategy can have the most impact.
60%
Non-commodity costs Where BICS helps
Policy costs, network and infrastructure charges. BICS exempts eligible businesses from three of the policy costs in this part of the bill.
40%
Commodity costs Where you can act
The unit price of the energy delivered, usually linked to the wholesale power market. This is where your procurement strategy has the most impact.
Source: Ofgem, ‘Managing business energy costs in an uncertain market’
Exposed to volatility
Commodity costs are those linked to the actual unit price of the energy delivered. In most cases, this is a price linked to the wholesale power market, which in turn is heavily influenced by international gas markets. Today, gas sets the price of electricity around 60% of the time.
In recent years, the international gas markets have been highly volatile, driven by weather and geopolitical events such as the conflicts in Ukraine and Iran. Without making predictions, the events of 2026 to date do not suggest we will see more tranquil markets anytime soon.
Who sets the GB power price?
60% of the time, it’s gas
GOV.UK, ‘Decisive action to break influence of gas on electricity prices’, April 2026
Aug 2022 · Russia invades Ukraine
£511/MWh
GB wholesale power price after Russia’s invasion of Ukraine, against around £73–85/MWh a year earlier.
Q1 2026 · Middle East conflict
+75%
Rise in UK wholesale gas prices between late February and late March 2026, as conflict in the Middle East hit global gas markets.
June 2026 · Heatwave
£1,379/MWh
Paid by Britain’s system operator for emergency imports during the heatwave, around 15 times typical day-ahead prices.
Source: Montel News, June 2026
That drives uncertainty and instability for businesses exposed to wholesale power prices – and uncertainty carries its own set of challenges and risks that compound those caused by high prices. Uncertainty undermines businesses’ ability to forecast, plan and set pricing and staffing strategies.
Waiting for prices to settle is a risk in itself: why ‘wait and see’ isn’t an energy procurement strategy.
Is a fixed price enough?
As a result, most businesses seek to fix their prices, either through fixed contracts with their supplier, or through corporate power purchase agreements (PPAs). But neither fully escapes volatility, as the comparison below shows. You can read more about this topic in our Volatility Tax guide.
| Variable contract | Fixed supplier contract | Corporate PPA | UrbanChain | |
|---|---|---|---|---|
| Wholesale exposure | Full exposure to market moves | Volatility priced in as a risk premium at the time of the quote | Shortfalls and surpluses traded on the wholesale market (shape and volume risk) | Matched directly with generators, outside the wholesale market |
| Price certainty | None – your price follows the market | Fixed for the contract term | Long-term price for the contracted volume | Prices agreed in advance, for the long term |
| Who can access it | Any business | Any business | Generally only large, extremely well-resourced companies | Any business |
| Renewable traceability | Depends on the tariff | Depends on the tariff | Linked to a specific generating asset | Named, fully traceable UK renewable generators |
A different approach to business energy procurement that delivers affordability and certainty
At UrbanChain, our platform offers an alternative to the wholesale market to avoid precisely this volatility. Our approach is to match businesses directly with renewable generators on a half-hourly basis, enabling both sides to set and lock in prices they are happy with, without relying on the wholesale market.
UK renewable generators
Solar, wind and other renewables
UrbanChain platform
Matches supply and demand every half hour
Your business
Locks in a stable, affordable price
Up to 25%
Typical savings
By matching directly and avoiding the wholesale market, we reduce intermediaries and associated fees.
Fixed
Locked-in stability
Prices can be agreed in advance, locking in stability and giving greater control.
Half-hourly
Direct matching
Your demand is matched to renewable generation every half hour, instead of being bought on the wholesale market.
The result is affordable, stable energy prices with supply linked to named, fully traceable UK renewable generators – and the approach is open to any business, regardless of size, sector or BICS eligibility.
Is your site eligible for BICS?
Check the criteria in our BICS explainer.
Apply by 30 November 2026
One application a year covers all of a company’s sites.
Is your energy price fixed today?
Relief from April 2027
Up to £40/MWh off three policy costs – but commodity costs, around 40% of the bill, are untouched.
You’re exposed to the wholesale market now
Especially important to act ahead of winter.
Check what you’ve locked in
Your rate may include a volatility premium. When does it renew? Renewing this autumn?
Take control of your commodity costs
Match directly with UK renewable generators and agree prices in advance, protected from the wholesale market.
Speak to one of our experts
How Evtec Group fixed its price for 15 years
Evtec Group, a tier 1 supplier in a large UK supply chain, needed long-term energy price stability but was structurally blocked from getting it. Through a private market on UrbanChain’s platform, it now buys renewable power matched every half hour, independently of wholesale prices.
15 yr
Locked-in pricing
100%
Generation matched via private market
72%
Renewables, and increasing over time
10,027 MWh
Energy matched Jan–Apr 2026
Key takeaways
What are commodity and non-commodity costs in my energy bill?
Commodity costs are the price of the unit of energy delivered. They fluctuate with the wholesale market (though you can fix them). Non-commodity costs are the charges added to cover things like delivering the energy, running the grid and funding government policies. These are fixed.
What costs does BICS help with?
BICS will provide partial or full exemption from three specific policy costs (non-commodity costs) – the Renewables Obligation (RO), Feed-in Tariff (FiT) and Capacity Market. This could provide up to £40 per MWh of relief to eligible businesses. However, relief will not take effect until April 2027.
What can I do if my business is ineligible for BICS?
Businesses can explore other ways of reducing their energy bill or finding price certainty. This can be done at any time, but is especially important ahead of winter for any business without a fixed contract or with any residual exposure to the wholesale market.
How can UrbanChain help?
UrbanChain’s platform matches generators and businesses directly every half hour, and allows generators and businesses alike to agree and fix prices in advance – all while protected from the wholesale market and its movements. This is how we deliver affordable, stable renewable energy.
Talk to us about your energy costs
Tell us a little about your business and one of our experts will be in touch to talk through how to make your energy costs more affordable and stable.
Choose an option above to get started.
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Related reading
The Winter Volatility Tax Hitting British Business Read more → 
The British Industrial Competitiveness Scheme (BICS) explained: eligibility, savings and how to apply Read more → 
Why traditional energy procurement is failing British businesses this winter Read more → 
Think a fixed-price energy contract lets you escape wholesale volatility? Think again. Read more → TAKE CONTROL OF
YOUR ENERGY COSTS
Affordable, stable renewable energy – open to any business, regardless of size, sector or BICS eligibility.