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The British Industrial Competitiveness Scheme (BICS)

Explained: eligibility, savings and how to apply

On 1st October 2026, the British Industrial Competitiveness Scheme opens for applications. But what is the scheme? Who does it apply to? And what will be the impact? UrbanChain explains everything you need to know.

Is BICS the same as EII? Compare them
Save up to £40/MWh
On eligible electricity costs
10,000+
Manufacturers expected to be eligible
30 Nov
Applications close (2026)

The scheme

What is the British Industrial Competitiveness Scheme (BICS)?

The British Industrial Competitiveness Scheme (BICS) is part of the UK government’s Industrial Strategy and is designed to cut electricity costs for manufacturers in certain key industries and their supply chains.

Over 10,000 businesses are expected to be eligible, with savings of up to £40 per MWh on electricity costs.

Already getting EII relief? See how BICS compares

Industrial site at sunset with electricity pylons, solar panels and wind turbines

How it works

How does BICS work?

BICS provides an exemption for eligible businesses from contributing to the costs of three policy schemes: the Renewables Obligation (RO), Feed-In Tariffs (FiT) and the Capacity Market.

Renewables Obligation

Supports large-scale renewable generators such as wind and solar farms.

Feed-In Tariffs

Fixed payments to small-scale generators such as rooftop solar and small wind.

Capacity Market

Pays power stations, batteries and flexible users to be available at peak times, so there’s enough capacity to keep the lights on.

BICS reduces non-commodity costs (the part of the energy bill that also includes network and infrastructure charges) but doesn’t touch commodity costs, the actual price of the energy used.

Why it matters Volatility

This means BICS will provide welcome relief on a relatively static part of an energy bill, however it doesn’t address the potential for large market volatility driven price swings hitting businesses on the commodity cost side. We discussed this in our recent ‘volatility tax’ guide.

Site level, not company level Applications

And remember, BICS applies at a site level, not a company level. So, if your business operates separate manufacturing and office premises, the latter is unlikely to qualify. You don’t apply per site, though: one application a year covers all of a company’s sites, and each site is assessed on its own (source).

Savings

What can I save with BICS?

The headline figure is that businesses can save up to £40 per MWh on their electricity costs through BICS, but the actual calculation is a bit more complex.

Remember, BICS eligibility is applied at the individual site level, and only for manufacturing eligible goods, using grid-supplied electricity.

SITES ONLY MAKING ELIGIBLE PRODUCTS

For sites only making eligible products and using 100% grid-supplied electricity, that makes the calculation relatively simple: they will receive 100% relief on their electricity bill for the three non-commodity costs covered by BICS. So, a site using 1,000 MWh that meets all the eligible criteria could save up to £40,000.

SITES MAKING A MIX OF PRODUCTS

However, for sites manufacturing a mixture of both eligible and ineligible products, it gets more complicated. Businesses will need to demonstrate what proportion of grid-supplied electricity is used for eligible manufacturing specifically (see table below).

GRID-SUPPLIED ELECTRICITY ONLY

As a reminder, this only applies to grid-supplied electricity. If a site uses 1,000 MWh per year but 300 MWh is generated by on-site solar behind the meter, then only the 700 MWh imported from the grid is in scope for BICS. This makes sense when you consider that BICS applies to the bill and therefore only the electricity that is bought, but is important to remember when making the calculations.

Proportion of electricity used for eligible manufacturing → Exemption level

25% or less

0%Exemption level

More than 25% but less than 50%

50%Exemption level

50% or more

100%Exemption level

Source: British Industrial Competitiveness Scheme: guidance for applicants

That’s the basics covered, but there are additional complexities, including for those with private network arrangements. If you want help walking through what BICS means for your business, get in touch with one of our experts.

Eligibility

Who is eligible for BICS?

BICS isn’t a universal scheme. It’s specifically targeted at energy-intensive manufacturing in the eight high-growth sectors (the IS-8) identified in the Industrial Strategy, as well as some businesses in their supply chains.

As well as meeting the sector and product criteria, companies must be registered on Companies House, and the sites they are claiming for must both be in England, Scotland or Wales, and use at least 33 MWh of grid-supplied electricity per year.

Eligible sectors

5 frontier industries IS-8 sectors

However not all eight IS-8 sectors involve manufacturing, which narrows the list to five ‘Frontier Industries’:

  1. Advanced manufacturing (including aerospace, automotive, batteries and space)
  2. Clean energy industries (including hydrogen, nuclear, wind, heat pumps and CCUS)
  3. Defence (including combat air, complex weapons, drones and maritime)
  4. Digital and technologies (including semiconductors, AI, quantum and cyber security)
  5. Life sciences (including biopharma and medtech)

6 foundational industries Supply chains

There are then ‘foundational industries’ that supply them, who are also eligible. They include:

  • Chemicals
  • Composites
  • Critical minerals
  • Materials
  • Steel
  • Electricity networks

Codes you’ll need

Industry SIC codes

Sectors are classified using SIC (Standard Industrial Classification) codes. These codes reflect a company’s business activities, and private limited and public companies must record at least one with Companies House, and no more than four. At least one of those codes needs to be on the official list here.

Products HS codes

Those in eligible sectors must also be manufacturing eligible goods at the sites they are claiming for. These are determined by Harmonised System (HS) codes. Businesses that export goods will probably already have these: they are the first six digits of the eight- or ten-digit commodity codes commonly used for international trade and customs. Those which don’t export can search for the right codes with this service. See the full official list.

BICS eligibility checker

Is my site eligible for BICS?

If that sounds like a lot, don’t worry. Answer five quick questions about your sites.

  1. 1Companies House
  2. 2Site location
  3. 3Eligible industry
  4. 4Eligible products
  5. 5Grid electricity

Question 1 of 5

Is your company registered on Companies House?

Your company must be registered with Companies House to apply.

Timeline

When can I save with BICS?

Savings will start from April 2027, with full savings from October 2027. That’s because the RO and FiT exemptions apply from April, but the Capacity Market exemption doesn’t come into effect until October.

  1. We’re here Apply

    1 Oct 2026

    Applications open

    The initial application window for BICS opened on 1st October 2026.

  2. We’re here Apply

    30 Nov 2026

    Window closes

    The initial application window runs through to the end of November.

  3. We’re here Decision

    Jan 2027

    Eligibility decisions

    Eligibility decisions should be confirmed in January 2027.

  4. We’re here Save

    Apr 2027

    Savings start

    The RO and FiT exemptions apply from April.

    ROFiT
  5. We’re here Save

    Oct 2027

    Full savings

    The Capacity Market exemption applies from October.

    ROFiTCM

We know what you’re thinking: that’s great, but too late to help with costs this winter. Power prices are already sky-high, headlines are full of gas storage warnings, and conflict in the Middle East still hasn’t abated.

Remember though: BICS isn’t the only way to reduce energy prices or protect your business from energy costs; if you’re worried about the impact of business energy costs this winter, learn more here.

Speak to one of our experts

BICS vs EII

Is BICS the same as EII?

There are also other government schemes available, such as the Energy Intensive Industries scheme (EII) and the subsequent British Industry Supercharger. These overlap with BICS in that they target the same elements of the bill with relief, meaning they cannot be stacked with BICS. However, BICS applies to a wider range of businesses, so opens the possibility of relief to many that didn’t qualify for these older schemes.

Differences between BICS and the EII scheme / British Industry Supercharger
Feature BICS EII / British Industry Supercharger
What it is A new scheme from the government’s Industrial Strategy. Applications opened in October 2026. Relief for energy-intensive industries, delivered through the British Industry Supercharger.
Who it’s for Manufacturers in the IS-8 frontier sectors and the foundational industries that supply them. A smaller group of the most electricity-intensive, trade-exposed industries, such as steel and chemicals.
Eligibility test Sector level only, based on the SIC codes your company has registered at Companies House. Your own site’s energy intensity isn’t tested. An eligible sector plus a business-level test: electricity costs must make up a significant share of your gross value added.
Bill costs covered Renewables Obligation, Feed-In Tariffs and Capacity Market. Renewables Obligation, Feed-In Tariffs, Contracts for Difference and Capacity Market.
Network charges Not covered. Network Charging Compensation.
When savings start April 2027, with full savings from October 2027. Already available.

Can I claim both? No. The schemes cover the same parts of the bill, so they can’t be stacked on the same electricity. Where a site already holds an EII certificate, BICS can only apply to the share of electricity that isn’t already covered.

Sources: GOV.UK: BICS guidance for applicants; GOV.UK: Network Charging Compensation uplift; CMS: BICS update published

Next steps

What do I do now?

BICS applications are open from 1 October to 30 November, so it’s time to get moving. To get started, you can:

  1. Talk to an UrbanChain expert about what BICS could mean for your business. We’ve already emailed our impacted customers

  2. Use the Gov.uk BICS eligibility checker

Get in touch

Talk to us about BICS

Tell us a little about your business and one of our experts will be in touch to help you work out what BICS could mean for your sites.

Choose an option above to get started.

From our webinar

The volatility tax: highlights

BICS and EII can support your business with non-commodity costs, but what about commodity costs? Find out more about how UrbanChain helps protect businesses from energy price volatility.

Charlie Parry, Chief Growth Officer, UrbanChainNick Evans, Indirect Sales Manager, UrbanChainStephen Todd, Head of Partnerships, e2 Energy Partners Watch the webinar →

“How can you run a business when a third of your costs are subject to 400% volatility? Energy security is more than what comes through your bank on a direct debit every month. It has a massive effect on business stability, the economy and the manufacturing sector.”

Stephen Todd

Head of Partnerships, e2 Energy Partners

“Those costs are not just high, but they’re unpredictable. And the impact that has on company budgets, on forecasts and investment cycles is real. That uncertainty is continuing to rise.”

Charlie Parry

Chief Growth Officer, UrbanChain

Watch on demand

Hear how private energy markets can reduce your exposure to volatile wholesale prices.

Watch the webinar

Related reading

White paper

The Winter Volatility Tax Hitting British Business

Our 'volatility tax' guide

Case study

Evtec Group

How Evtec Group fixed its price for 15 years
Rows of solar panels on a UK solar farm

READY TO
TALK BICS?

Our experts can help you work out what the scheme means for your sites.

Speak to one of our experts