What BICS actually removes from your bill
Every business electricity bill carries the cost of government policy schemes that suppliers pass through to customers. BICS removes three of them for eligible manufacturing sites:
- Renewables Obligation (RO): exempt from April 2027
- Feed-in Tariffs (FiT): exempt from April 2027
- Capacity Market (CM): exempt from October 2027
The government puts the saving at up to £40 per MWh. A plant using 2,000 MWh a year could therefore save tens of thousands of pounds annually, every year for the five-year life of the exemption. BICS does not cover Contracts for Difference (CfD) or network charges. Those sit under the older EII scheme, now called the British Industry Supercharger.
Who is eligible for BICS?
A business must meet all four tests:
- Registered on Companies House.
- An eligible SIC code. At least one of the up to four SIC codes on your Companies House record must be on the BICS list. The list covers frontier manufacturing in the Industrial Strategy growth sectors (electricity intensity above 0.9%) and foundational manufacturing (above 2.7%).
- An eligible product. You must make a product whose 6-digit HS (commodity) code is on the BICS list at the site you're claiming for. You don't need to export.
- At least 33 MWh a year of grid electricity per site. In practice, more than 16.5 MWh over the six months of bills you submit.
The bar is much lower than the old EII/Supercharger tests. That's why around 10,000 manufacturers are expected to qualify, including many mid-sized plants that have never had levy relief before. The scheme applies in England, Scotland and Wales, not Northern Ireland.
How much of your site's electricity is exempt
Relief is worked out site by site, based on how much of the site's grid electricity goes into making eligible products. That includes supporting loads such as compressed air, HVAC, lighting, chillers, forklifts and on-site offices.
| Share of grid electricity used for eligible manufacturing | Exemption | |---|---| | 25% or less | 0% | | More than 25%, less than 50% | 50% | | 50% or more | 100% |
A site making only eligible products gets 100%, subject to verification. On-site solar, CHP or wind generation is excluded from the calculation, because only grid-imported electricity carries the levies. Shared meters, landlord billing and sites that already hold an EII certificate each have their own calculation method. These are the cases where applications most often go wrong.
BICS vs EII (British Industry Supercharger)
If you already hold an EII certificate, the Supercharger is the richer scheme. It covers CfD as well as RO, FiT and CM, plus up to 90% network-charge compensation, worth roughly £65 to £87/MWh in total. You can hold both, but not for the same electricity. BICS only applies to the share of each meter that isn't already covered by your EII certificate. For most mid-sized manufacturers that never cleared the EII tests, BICS is the first levy relief they've been able to claim.
Key dates for the first year
- 1 October 2026: applications open
- 30 November 2026, 11:59pm: applications close
- January 2027: eligibility decisions emailed
- April 2027: RO and FiT exemptions start on your bill
- October 2027: Capacity Market exemption starts
The government has also said eligible businesses will receive an additional payment in 2027 that effectively backdates support. Full details are still to be published. You make one application per legal entity per year, but it can cover several sites.
How Energy Optimiser helps
Our free 5-minute audit checks your sites against the BICS tests alongside the other levers on your bill: kVA capacity, contract terms and EII/CCA relief. If you look eligible, a consultant can help you pull together the MPANs, six months of bills and the eligible-electricity calculation before the deadline. The guidance allows a consultant to prepare and submit an application on your behalf, provided a Companies House officer authorises them.
Frequently asked questions
BICS stands for the British Industrial Competitiveness Scheme, a UK government scheme that exempts eligible manufacturers from the indirect costs of the Renewables Obligation, Feed-in Tariffs and Capacity Market on their electricity bills.
The first BICS application window opened on 1 October 2026 and closes at 11:59pm on 30 November 2026. Applications cannot be amended after submission.
The government says BICS will cut electricity costs by up to £40 per MWh for eligible manufacturers. Some manufacturers could see their overall electricity bill fall by up to around 25%.
Exemption from Renewables Obligation and Feed-in Tariff costs starts in April 2027, and from Capacity Market costs in October 2027. Successful exemptions last five years.
Each manufacturing site must use at least 33 MWh of grid electricity a year, evidenced as more than 16.5 MWh over six consecutive months of bills.
Yes, if you meet the BICS criteria, but not for the same electricity. BICS only applies to the share of a meter not already covered by your EII (British Industry Supercharger) exemption.
Yes. The guidance allows a consultant or other third party to complete and submit the application, as long as a Companies House-registered officer of the business confirms they are authorised. The business remains responsible for the accuracy of the application.