British Industrial Competitiveness Scheme (BICS)

Support for Manufacturers Preparing for BICS

The British Industrial Competitiveness Scheme (BICS) could reduce electricity costs for eligible UK manufacturers from 2027.

The scheme is intended to provide eligible businesses with exemptions from the indirect costs associated with:

Renewables Obligation (RO)
Feed-in Tariffs (FiT)
Capacity Market (CM)

Government has indicated that support will be targeted at eligible manufacturing businesses operating within approved sectors and manufacturing approved products. The level of support available will then depend on how electricity is used within qualifying manufacturing activity at site level.

Start Your Eligibility Check

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The first application window is expected to open between 1 October 2026 and 30 November 2026, with exemptions commencing during 2027.

Government has announced an additional payment for eligible businesses, intended to reflect support for the period prior to exemptions taking effect.

For many businesses, the immediate question is not whether BICS exists.

It is whether the scheme applies to their operations, what level of support may be available and what information may be required before an application can be submitted.

What Does BICS Mean for Manufacturers?

Electricity costs remain a significant challenge for many UK manufacturers.

Government estimates suggest that more than 10,000 manufacturers could benefit from the scheme, with approximately £600 million per year expected to be delivered in electricity cost relief across eligible organisations.

Eligibility is expected to depend on:

Sector classification (SIC codes)
Product classification (HS codes)
Site-level electricity use

Whilst the first two criteria may be relatively straightforward to establish, the site-level assessment introduces additional considerations.

Electricity consumption, manufacturing activity, site structures, metering arrangements and supporting evidence may all influence the position reached by an organisation.

As a result, two manufacturers operating within the same sector may not necessarily receive the same level of support.

How Does BICS Work?

To qualify for BICS, businesses are expected to satisfy both sector and product requirements.

Sector Eligibility
Businesses must operate within an eligible manufacturing sector identified through approved SIC codes.
Product Eligibility
Businesses must manufacture at least one eligible product identified through approved HS codes.
Site-Level Assessment
The level of support available is expected to depend on the proportion of electricity used within qualifying manufacturing activity at each site.

Electricity Used for Eligible Manufacturing Activity	Expected Support
Less than 25%	No exemption
25% – 50%	50% exemption
Greater than 50%	Full exemption

Current Government guidance states that support is expected to be determined at site level rather than company level.

What Manufacturers Are Beginning to Review

As organisations begin assessing BICS, a number of themes are appearing repeatedly.

Eligibility

Reviewing SIC and HS classifications to understand whether the scheme may apply.

Sites

Determining which sites may need to be included within an assessment.

Electricity Consumption

Understanding how electricity is used across manufacturing and non-manufacturing activity.

Metering

Reviewing MPAN portfolios, sub-metering arrangements and shared supplies.

Evidence

Assessing what information is available and whether it can support the position being presented.

Existing Schemes

Reviewing how BICS may interact with existing energy, carbon and electricity cost management arrangements.

Common Challenges

The headline eligibility criteria are only part of the assessment.

As manufacturers begin reviewing the practical requirements of the scheme, several challenges are emerging.

Mixed-Use Sites

Manufacturing activity, warehousing, offices and supporting services do not always sit behind separate supplies.

Shared Supplies

A single electricity supply may support multiple activities across a site.

Landlord Arrangements

Some businesses receive electricity through landlord arrangements rather than directly from suppliers.

Multiple MPAN Portfolios

Understanding which supplies support which activities can be difficult, particularly across larger estates.

Historic Site Changes

Acquisitions, site expansions and changes in operational activity can affect how electricity is distributed across a business.

Evidence Requirements

Information may sit across multiple sites, systems and departments.

None of these issues necessarily prevent participation in the scheme.

They do, however, influence the amount of work required before an application can be prepared.

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Why Site-Level Assessment Matters

One of the most significant aspects of BICS is that support is expected to be determined at site level.

Many businesses will be able to establish relatively quickly whether they operate within an eligible sector and manufacture an eligible product.

Establishing how electricity is used across sites, activities and manufacturing processes can take longer.

For some organisations, this may be straightforward.

For others, particularly those operating multiple sites, shared supplies, landlord arrangements or mixed-use facilities, additional analysis may be required before a reliable position can be established.

This is one of the areas where businesses are increasingly focusing their attention ahead of the application window.

How EIC Can Help

BICS combines sector eligibility, product eligibility and site-level electricity assessment.

Whilst many organisations may be able to establish potential eligibility relatively quickly, understanding how the scheme applies in practice can require a more detailed review of sites, electricity consumption and supporting information.

EIC supports manufacturers by helping them:

Review SIC and HS code eligibility
Assess manufacturing activities
Review site structures and boundaries
Analyse electricity consumption
Review metering arrangements
Identify evidence requirements
Prepare supporting documentation
Support the application process

Our objective is to help businesses establish a clear and evidence-based position before the application window opens.

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Why Choose EIC?

BICS sits at the intersection of energy data, manufacturing activity and compliance.

Our team already supports organisations with:

Electricity data analysis
Metering reviews
Utility procurement
Energy compliance
Carbon reporting
Energy cost management

This allows us to help manufacturers understand how the scheme applies in practice, what information may be required and where additional preparation may be beneficial before applications are submitted.

FAQ about British Industrial Competitiveness Scheme (BICS)

What is the British Industrial Competitiveness Scheme (BICS)?

BICS is a Government support scheme designed to reduce electricity costs for eligible UK manufacturers through exemptions from the Renewables Obligation (RO), Feed-in Tariffs (FiT) and Capacity Market (CM).

Who may qualify for BICS?

Businesses are expected to require both an eligible SIC code and an eligible HS product code. Support is then expected to be assessed using site-level electricity use.

What are SIC codes?

SIC (Standard Industrial Classification) codes are used to classify business activities and identify the sector in which a business operates. The government has published a list of eligible manufacturing SIC codes for the scheme.

What are HS codes?

HS (Harmonised System) codes classify products and manufactured goods. Businesses are expected to manufacture at least one eligible product associated with an approved HS code.

Do businesses need both SIC and HS codes?

Yes. The Government has indicated that sector eligibility alone is not sufficient. Businesses are expected to satisfy both sector and product requirements.

Why is BICS assessed at site level?

The Government has indicated that support is expected to be linked to electricity used within eligible manufacturing activity at each site. As a result, site-level electricity use plays an important role in determining support levels.

What happens if a site contains manufacturing and non-manufacturing activity?

Businesses may need to understand how electricity is used across different activities and how qualifying manufacturing activity is represented within overall site consumption.

Do shared electricity supplies affect BICS eligibility?

Shared supplies do not necessarily prevent participation in the scheme, but they may require additional analysis to understand how electricity is used across different activities.

Does landlord-supplied electricity affect BICS eligibility?

Landlord arrangements were discussed during consultation and may require additional review depending on the circumstances. Further guidance is expected from the Government.

When does the BICS application window open?

The first application window is expected to run from 1 October 2026 to 30 November 2026.

When will BICS support begin?

RO and FiT exemptions are expected from April 2027, with Capacity Market exemptions expected from October 2027.

How long does BICS eligibility last?

The Government has indicated a five-year eligibility period, supported by annual declarations and a review after Year 2.

How much could a business save through BICS?

The value will depend on electricity consumption, site arrangements, manufacturing activity and support levels achieved. Government estimates suggest relief could be worth up to approximately £40/MWh where eligibility requirements are met.

What information may be required to support an application?

Businesses may need information relating to:

Electricity consumption
Site boundaries
Manufacturing activity
Metering arrangements
Supporting evidence

Further guidance is expected from the Government.

What should manufacturers be doing now?

Businesses that may be in scope should consider reviewing:

before the application window opens.

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Speak to the EIC Team

If you believe your organisation may be eligible for BICS, speak to the EIC team today.

We can help you understand how the scheme applies to your operations, identify the information likely to be required and support you throughout the assessment and application process.

EIC can also provide support for the annual submissions and 2 year Review.

Enquire Today

Not sure if your business qualifies for BICS? Contact EIC for a consultation and get expert guidance on eligibility, potential support and the next steps.

Make the call today at 0208 836 3535 or fill in the contact form.

With a century of combined experience in carbon and energy strategy, EIC Partnership is here to help you manage today and plan for tomorrow.

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