BICS explained: eligibility, deadlines and how to apply

13/10/26

Applications opened this month for BICS, the British Industrial Competitiveness Scheme. This is a new UK Government scheme supporting manufacturers by reducing their business electricity costs. Eligible participants receive an exemption from certain non-commodity levies that are built into electricity bills. The Government has introduced the scheme as part of its Modern Industrial Strategy to strengthen the UK’s industrial competitiveness, encourage investment and support high-quality manufacturing jobs.

From next year, BICS will reduce electricity costs by up to £40 per megawatt hour, which can be up to 25 per cent off business electricity bills. It does this by exempting businesses from the indirect costs of the Renewables Obligation and Feed-in Tariffs, which fund renewable generation, and the Capacity Market, which pays to keep enough electricity capacity available.

Who is eligible for BICS?

The scheme is aimed at manufacturing industries, which are registered on Companies House, operate in an eligible sector by SIC code, manufacture an eligible product by HS code, and meet the minimum electricity usage of at least 33 MWh (33,000 kWh) of grid-supplied electricity a year at the manufacturing site. Applicants also need to provide evidence of electricity invoices covering six consecutive months.

What are the time scales for BICS?

Applications opened on 1 October and will close on 30 November. Relief on RO and FiT costs begins in April 2027, and relief on Capacity Market costs follows in October 2027.

Once approved eligibility should last for five years, however organisations must follow specific reporting rules to maintain compliance.  These include annual declarations, a formal review of eligibility in Year 2 and ensuring that any structural or operational changes to the business, which may impact eligibility, are communicated to the Department for Business, Innovation, Science and Trade (BIST) in a timely manner. 

How IEC can help with BICS

As specialists in business energy management and compliance, we can support your organisation to understand if you meet the qualification criteria for the British Industrial Competitiveness Scheme (BICS).  We can check your eligibility by reviewing your Standard Industrial Classification (SIC) classification and determine whether you manufacture eligible products, as defined by the Harmonised System (HS).  If these elements are satisfied and your company consumes at least 33 MWh (33,000 kWh) of electricity per annum (and is listed on Companies House), then you should qualify for BICS. 

We have a proven track record in supporting organisations with government legislation and can assist you with both the application process and the ongoing scheme management. 

The IEC team can guide you through the whole process, from initial application to ongoing reporting requirements. This is important as all participants are required to make annual declarations to re-confirm eligibility and advise scheme administrators of business changes which could impact this.  Failure to comply could see an organisation’s exemption revoked, so it is imperative that businesses manage the scheme effectively. 

Contact us to arrange a no-obligation discussion with one of our energy experts to ensure you receive the full support you are entitled to, while remaining compliant.