Introduction
The British Industrial Competitiveness Scheme (BICS) aims to reduce electricity costs for qualifying manufacturers. This article outlines the application process, eligibility criteria, evidence requirements, and exemption arrangements under the scheme.
What is the British Industrial Competitiveness Scheme (BICS)?
BICS is a Government scheme operated by BIST (Department for Business, Innovation, Science and Trade, previously the Department for Business and Trade (DBT)).
Rather than subsidising energy directly, BICS works by removing certain policy-related charges from electricity bills.
BICS exempts businesses from paying the indirect costs of the established RO, FIT and CM schemes.
BICS Eligibility: Who Can Apply?
- Companies who are registered on Companies House (Great Britain only, NI not included)
- Companies who operate within the eligible IS-8 Sectors
- Companies who manufacture eligible products in Great Britain
- Eligible products are defined as โgoods which are important outputs of manufacturing frontier and foundational industriesโ, defined by Harmonised System (HS) codes.
- Companies with at least 33 megawatt-hours (MWh) of grid-supplied electricity per year/manufacturing site being claimed
Businesses must have a relevant SIC code registered on Companies House. The business will not be able to proceed with the application unless you have at least one eligible SIC code recorded on Companies House.
Overseas or other companies with no SIC code must provide:
- The SIC code that most closely reflects your business activities
- A short explanation of how your activities align with that classification
BICS Application Process
BIST (Department for Business, Innovation, Science and Trade) has developed an online checker for BICS eligibility.
Final eligibility will only be determined following submission of a full application and assessment by BIST. The first BICS application window covers the period: 01/10/2026 - 30/11/2026 on the BICS Collection Page.
Once submitted, it will not be possible to amend the application.
Additional limitations include:
- One application per legal entity, which can cover multiple sites.
- Businesses must have a GOV.UK One Login account.
- Applicants must be an officer registered on Companies House or be able to provide the email address of someone who is and have them confirm you are authorised to complete the application on behalf of the business.
- Applications may be completed by a third party, such as a consultant, on behalf of the business. The individual submitting the application does not need to be an officer of the company or employed by the business, provided a Companies House-registered officer confirms they are authorised to act on the businessโs behalf via the email confirmation process.
- Businesses should ensure that the individual who starts the application is the person who will complete and submit it. Applications cannot be transferred between users. If a different individual needs to submit the application, the application will need to be restarted.
- BIST will confirm eligibility decisions for all applicants each delivery year by the second week of January.
- The outcome of the application will be notified by email from BIST.
BICS Evidence Requirements
For eligibility and applications, a business must provide the following evidence for each site:
- Confirmation of the eligible products manufactured at the site, as well as a list of ineligible products.
- Provision of 6 consecutive monthsโ evidence for which information is available in the 12-month period immediately prior to the making of the application, demonstrating the manufacture of eligible products at the site.
- Confirmation of which, if any, production is supported through the British Industry Supercharger Scheme (EII and NCC).
Businesses receiving support through the British Industry Supercharger may also apply for BICS if they meet the relevant eligibility criteria. However, a recipient cannot receive relief for the same activity under both schemes.
If the same activity is eligible for both BICS and the British Industry Supercharger, the latter provides a higher level of support. Any exemption which the site receives through BICS will apply only to the proportion of electricity consumption not already covered by the British Industry Supercharger.
For the first year of delivery, eligibility will be determined solely by reference to the listed SIC and HS codes.
How Much Relief Can BICS Provide?
BICS support is calculated at the level of an individual manufacturing site.
Definition of a manufacturing site is as follows:
โAn area in Great Britain at which a person, who has control over, or use of, the area, carries out the manufacture, production or processing of any product or substance.โ
Sites that only undertake supporting activities (for example, storage, sorting, distribution, administration or other ancillary functions) are not considered manufacturing sites unless qualifying manufacturing, production or processing activities are carried out at that site.
If the sites are geographically separate and not adjoining, they are treated as two separate manufacturing sites. Eligibility will be assessed separately for each site.
If a manufacturer leases part of a larger industrial site owned by a landlord, for BICS purposes only the area occupied or controlled by the manufacturer forms part of its manufacturing site.
The level of relief depends on the proportion of electricity consumption that relates to the manufacture of eligible products and eligible manufacturing activities.
Where a site manufactures only eligible products, it will normally receive a 100% exemption. Where a site manufactures both eligible and ineligible products, a pro-rating methodology is used to ensure that support is proportionate to the level of eligible activity taking place at the site.
Local and distributed electricity generation sources (such as behind-the-meter solar generation, combined heat and power (CHP) generation or on-site wind generation) are not subject to the policy costs covered by BICS and are therefore excluded from the BICS calculation.
Eligible manufacturing activities include electricity used directly in the manufacturing process, as well as electricity used for supporting activities necessary for eligible manufacturing to take place.
Where a site manufactures only eligible products, it will normally receive a 100% exemption.
For sites that produce both eligible and ineligible products, the level of relief depends on the amount of electricity used for eligible activity.
The proportion of electricity used for eligible manufacturing determines the exemption level:
- 25% or less = 0% exemption
- More than 25% but less than 50% = 50% exemption
- 50% or more = 100% exemption
Businesses supplied through private network arrangements may be eligible for BICS where they can demonstrate that they are subject to the relevant BICS policy costs and provide sufficient information to enable those costs to be verified.
BICS Exemption Period and Requirements
- Successful applicants will be notified by BIST of the level of exemption applied to the manufacturing site(s).
- The exemption is valid for 5 years.
Continued Eligibility Requires
-
Submission of an annual declaration
- The declaration will be submitted online between December and January during the eligibility period in Years 1, 3 and 4. This will need to be signed off by an officer or agent duly authorised to declare on behalf of the BICS applicant.
-
Mid-point review at Year 2 of support
- In the second year of receiving the BICS exemption, businesses will be required to submit a report in support of a full eligibility review. This must be submitted between April and 30 November in the second year of support and will be a combination of an annual declaration and a full eligibility reassessment.
Record Keeping Requirements
- Businesses must retain all records and supporting evidence relating to their application for at least 6 years.
Key Takeaways
- The British Industrial Competitiveness Scheme (BICS) aims to reduce electricity costs for qualifying manufacturers.
- Businesses must meet eligibility requirements relating to SIC codes, HS codes and minimum electricity usage.
- The first application window runs from 1 October 2026 to 30 November 2026.
- Exemptions may be awarded for up to five years, subject to continued eligibility requirements.
- Businesses must retain supporting records and evidence for at least six years.
How Can NUS Support with BICS?
Our UK office has a dedicated team committed to international Sustainability Services. Our Sustainability team supports industrial and manufacturing organisations with energy management and audits, energy and carbon compliance, decarbonisation road-mapping, and support with implementation of onsite generation.
We also support compliance with the Energy Efficiency Directive Article 8 (EED A8), Energy Savings Opportunity Scheme (ESOS), Climate Change Agreement (CCA), Carbon Reduction Plan (CRP), and Streamlined Energy and Carbon Reporting (SECR).
For next steps, reach out to NUS to discuss the scheme in more detail and, if suitable, begin the below process:
- Eligibility Review
- Process Review
- BICS Application
- Ongoing Analysis, Review and Continuous Support
Please contact NUS online or email UKSustainability@nusconsulting.co.uk for more information.