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BICS: What UK Manufacturers Need to Know (Q3 2026 Update)

BICS aims to reduce electricity costs for UK manufacturers. NUS has reviewed the most recent update from the Department for Business and Trade ahead of the scheme's commencement.

14th July 2026 | 3 minute read

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Energy Insights & Analysis Regulations, Grid, & Taxes

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The British Industrial Competitiveness Scheme (BICS) aims to reduce electricity costs for UK manufacturers.

The below provides the latest update from the Department for Business and Trade (DBT) regarding BICS ahead of the scheme’s commencement. NUS has reviewed the update and provides the key points in this article.

Key Decisions

  • The annual grid electricity usage threshold has increased from the originally proposed 3.5MWh per year to 33MWh per year. On-site generated electricity is excluded from this threshold. The revised threshold remains below Ofgem’s microbusiness definition of up to 100MWh annual electricity consumption.
  • 4 new SIC codes and 9 HS codes had been added to the eligibility list (British Industrial Competitiveness Scheme: consultation on regulatory changes and scheme delivery - GOV.UK). There is no intention from the Government to make further changes on the list for 2027.
    • SIC Code (Standard Industrial Classification) – The SIC code is a numerical system used to classify businesses according to their main activities.
    • HS Code (Harmonised System) – HS codes provide a universal language for trade, enabling customs authorities worldwide, including in the UK, to identify products accurately, calculate applicable duties, taxes, and determine regulatory requirements.
  • Businesses who receive energy from a third party (such as landlord/ site owner) will be eligible for BICS, subject to verifiable levy information being available. The responsibility for providing evidence to DBT will rest with the business.
  • Businesses with private network arrangements can only participate from year 2 of the scheme onwards.
  • The scheme is site/MPAN-based, and the level of relief is calculated on a pro-rata basis, according to the proportion of eligible consumption relative to the site’s total consumption. Evidence of proportion of electricity consumed relating to the production process:
    • If the ratio less than 25% - no relief awarded
    • If the ratio is between 25/50% - 50% of the exemption of the relevant levies
    • If the ratio is above 50% - 100% exemption from the levy cost applied to all MPAN’s on the site.
  • Busienesses eligible for BICS will receive an additional payment as one-lump sum in 2027 from the electricity suppliers through a bill credit mechanism.
  • Overseas registered companies and Limited Partnerships with no SIC code registered, will still able to apply to the scheme. Further guidance on this will be set out in a separate guidance document.
  • BICS will be funded from the removal of Carbon Price Support (from 2028) and from the inflation indexation made on the RO/FiT.

Scheme Delivery

  • The UK Government’s intention is to publish a comprehensive business guide to set out and specify the application process and the evidence required. A digital eligibility checker tool will also be launched to allow businesses to identify their eligibility.
  • The identification window will be 01/10/2026 - 08/01/2027 with a very limited application window of 01/10/2026 - 30/11/2026. DBT will confirm all eligible businesses by the proposed January date in 2027 (8 January 2027). The application window for Year 2 will be a longer period and will be published at a later date.
  • The eligibility period will be 5 years, with a review at end of Year 2 and an annual declaration to monitor and confirm ongoing eligibility.
  • The annual declaration/renewal to monitor and confirm ongoing eligibility appears to be a light touch in terms of requirements on the business in terms of administration.

NUS Consulting Group will continue to monitor the scheme and release updates for any significant changes.

How NUS Can Support

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 and Review

Please contact NUS online or email UKSustainability@nusconsulting.co.uk for more information.