Guidance

British Industrial Competitiveness Scheme: guidance for applicants

Updated 1 October 2026

Applies to England, Scotland and Wales

1. Introduction

1.1 Scheme overview

The government is working in partnership with businesses, mayors and local government to drive good growth and create good jobs across Great Britain. Our ambition is to engineer the reindustrialisation of Great Britain, building on what we’ve achieved through our Modern Industrial Strategy and make it easier for British businesses to compete and succeed.

An important part of delivering that ambition is addressing industrial electricity costs. We are clear that the long-term answers to the challenges around energy security, affordability and sustainability point in the same direction – clean energy. Our Clean Power 2030 Action Plan sets out how we will deliver clean power by 2030. This means transitioning to an electricity system where at least 95% of Great Britain’s electricity generation comes from clean sources.

To address the more immediate electricity cost challenges, the government is pressing ahead with the British Industrial Competitiveness Scheme (BICS) as part of its Modern Industrial Strategy. The scheme is designed to support eligible manufacturing businesses – those frontier industries within the Industrial Strategy growth driving sectors (the ‘IS-8’), together with the manufacturing foundational industries that provide important inputs to the frontier industries.

By reducing electricity costs for eligible businesses, BICS will strengthen our industrial competitiveness, encourage investment and support high-quality manufacturing jobs across Great Britain.

Businesses eligible for BICS will receive exemptions from the indirect costs associated with 3 existing electricity policy schemes:

• the Renewables Obligation (RO) and Feed-in Tariffs (FiT) which require electricity suppliers to make payments to support generation of electricity from renewable sources; and

• the Capacity Market (CM) which requires electricity suppliers to make payments to ensure the UK has adequate electricity capacity

The scheme will apply in Great Britain only, as energy policy is largely devolved in Northern Ireland.

1.2 About this guidance

This guidance explains the eligibility criteria, application process and ongoing obligations for businesses seeking support under BICS. It is intended to help businesses prepare and submit applications to the scheme.

Ensure that you read this guidance in full before submitting an application. We advise businesses to complete applications carefully as there will be no opportunity to amend an application after it has been submitted.

The government intends to amend the existing secondary legislation establishing the RO, FiT and CM. These changes are expected to be made by Autumn 2026 subject to parliamentary approval. This guidance is subject to the relevant legislation coming into force.

This guidance will be kept under review and updated as necessary to reflect any changes to the scheme or its delivery. This includes further information on the additional payment that eligible businesses will receive from the government and via their electricity supplier in 2027.

1.3 Timings

For the first year of BICS, the dates are the following.

1 October 2026

Application window opens.

30 November 2026 at 11:59pm

Application window closes.

Early 2027

Businesses receive confirmation of their eligibility decision.

April 2027

Exemption from paying the indirect costs of the RO and FiT starts.

October 2027

Exemption from paying the indirect costs of the CM (in addition to RO and FiT) start.

These dates apply to the first year of the scheme only.

1.4 Application checklist

Full details are included later in the guidance. Before you apply, make sure you have the following information, documents and evidence ready:

• confirmation that you are likely to be eligible using our online eligibility checker tool

• your passport or driving licence to complete GOV.UK One Login for Businesses, if you do not already hold a business account

• you are an officer registered on Companies House, or be able to provide an email address for someone who can authorise you to complete the application on the business’s behalf. You will need to know your company authentication code for this. This is a 6-digit code used for filing accounts with Companies House. It’s different from the 11-digit personal verification code issued by Companies House.

• your Companies House registration number

• details of each manufacturing site in Great Britain for which you are applying for relief, including the Meter Point Administration Numbers (MPANs) for each site

• electricity bills covering the most recent 6 consecutive months for which information is available within the last 12 months, demonstrating electricity supplied to each manufacturing site

• details of the products manufactured at those sites and supporting evidence

• if you have a private electricity supply network, confirmation from your electricity supplier that your arrangement is in scope for BICS

• a review of the evidence requirements set out in Annex A

Applicants must provide accurate, complete and truthful information. BIST will carry out proportionate checks before and after exemptions are awarded, including checks against data held by other bodies where lawful and appropriate. False, misleading or incomplete information may result in the application being rejected, an exemption being revoked, recovery of support and further enforcement action.

2. Eligibility

2.1 Who can apply

To be eligible for BICS, your business must meet all 4 of the following criteria.

Criterion 1: be registered on Companies House

Criterion 2: operate within an eligible sector

Eligible sectors are manufacturing frontier industries within the Industrial Strategy growth driving sectors (the ‘IS-8’), together with the manufacturing foundational industries that provide important inputs to the frontier industries.

They are defined by the Standard Industrial Classification (SIC) 2007 system. Your business must have the relevant SIC code registered at Companies House, unless you are exempted by Companies House requirements.

Criterion 3: manufacture eligible products in Great Britain

Eligible products for BICS are goods which are important outputs of manufacturing frontier and foundational industries. They are defined by the Harmonised System (HS).

Criterion 4: use at least 33 megawatt-hours (MWh) of grid-supplied electricity per year at the manufacturing site for which support is being claimed

To note, only electricity supplied from the grid is eligible for BICS support.

Businesses will not be able to proceed with an online application unless they meet these criteria.

2.2 Criterion 1: registered on Companies House

Companies House is the government’s registrar of companies.

Checking whether your business is registered

You can check whether your business is registered with Companies House by:

1. Visiting the Companies House Find and Update Company Information service.

2. Searching using your company name or company number.

If your business appears in the search results, it is registered and you can view details such as its registration status and registered office address.

If your business is not registered

Businesses who are not currently registered may wish to seek professional advice on whether to incorporate. You can do this through the GOV.UK Companies House service and will need to provide details such as:

• the company name

• registered office address

• directors

• people with significant control

Once your application is approved, you will receive a company number, and your business will be added to the Companies House register. Online registrations with Companies House usually take approximately 24 to 48 hours to be processed.

If your business was registered with Companies House within the previous 6 months, your application may be subject to additional scrutiny.

You will not be able to proceed with an application for BICS if you are not registered on Companies House.

Companies with special Companies House statuses or expected changes 

In some circumstances, a business’ status on Companies House may affect how BICS eligibility is assessed or the information required as part of an application. 

If your Companies House status is due to change, you should wait until the change has been processed before submitting your application. BICS applications are assessed using the information held on the Companies House register at the point an application is submitted. 

For example, if your company has been dissolved and is in the process of being restored to the register, you should wait until the restoration has been completed before applying for BICS. Companies House updates can take between 5 and 15 working days to process. Applications must be submitted by 11:59pm on 30 November 2026. 

Where Companies House records indicate that a company is dormant or subject to insolvency or restructuring procedures, additional information may be required before eligibility can be confirmed. This is to establish that the company continues to operate and carry out eligible manufacturing activities. 

Dormant companies 

If Companies House records show that a company is dormant, the applicant will be asked to explain how the company is actively operating while it is dormant.  

Companies subject to a Company Voluntary Arrangement (CVA) 

Companies that are subject to a CVA may still be eligible for BICS if they continue to operate and comply with the terms of the arrangement. Applicants may be required to provide details of the CVA, including the insolvency practitioner responsible for the arrangement, the repayment schedule, any obligations that have not been met and any planned or completed operational restructuring. 

Companies in administration, insolvency proceedings or receivership 

Companies that are in administration, insolvency proceedings or receivership may still be eligible for BICS where they continue to operate and carry out eligible manufacturing activities. Applicants will be required to confirm that the company remains operational and may be asked to provide supporting evidence. Companies in administration may also be required to demonstrate that the application is being made by, or with the authority of, the appointed administrator. 

Companies in liquidation 

Companies in liquidation may apply for BICS where they remain operational and have the agreement of the appointed liquidator. Applicants will be required to provide a signed letter from the liquidator that: 

• includes the liquidator’s name and contact details

• confirms that the company continues to operate

• gives permission for the company to apply for BICS

• is dated no more than 28 days before the application is submitted

Applicants may also provide additional information explaining how the company continues to operate, where relevant.

2.3 Criterion 2: operate in an eligible sector

What is an eligible sector?

To be eligible for BICS, your business must operate within an eligible sector.

Eligible sectors are the frontier manufacturing industries and foundational manufacturing industries, as defined in the government’s Industrial Strategy, that pass the relevant sectoral electricity intensity threshold.

These are classified using 4-digit SIC 2007 (Standard Industrial Classification) codes.

For manufacturing frontier industries, only SIC codes with electricity intensity over 0.9% are eligible and for manufacturing foundational industries, only SIC codes with electricity intensity over 2.7% are eligible.

Electricity intensity has been calculated as total sectoral electricity consumption ÷ total sectoral gross value added (GVA), using Office for National Statistics (ONS) data. View the full list of eligible SIC codes which pass the sectoral electricity intensity test.

This is the final list of eligible activities which will be reflected in the implementing legislation. The government does not intend to make any further changes to the eligible SIC or HS code lists for 2027.

For private and limited companies

For private limited and public limited companies, you are required to record a SIC code with Companies House. A company may register up to 4 SIC codes with Companies House to reflect its business activities.

For the purposes of BICS eligibility, only one of these SIC codes must correspond to an eligible sector.

Your SIC code will be used as the first step in determining whether you operate within an eligible sector. You will not be able to proceed with an application unless you have at least one eligible SIC code recorded on Companies House.

Your SIC code must accurately reflect the business activities undertaken at your manufacturing site.

Updating your SIC code

If your business operates in an eligible BICS sector but your SIC code(s) do not reflect those activities, you should check that your Companies House registration accurately describes your business operations.

SIC codes can be added, removed or amended by filing a confirmation statement with Companies House. This usually takes between 24 and 48 hours.

You will not be able to proceed with an application if the SIC code you have listed on Companies House is not eligible for BICS.

If your registered SIC code has been changed within the previous 6 months, your application may be subject to additional scrutiny.

The Economic Crime and Corporate Transparency Act has introduced stronger requirements for all information on the Companies House register to be accurate. This applies to SIC codes just as it does to any other information you file.

Under these new powers, Companies House can challenge, reject or remove information that appears incorrect, inconsistent or misleading. If your SIC code does not reflect your company’s actual activity, you may experience filing rejections or delays while discrepancies are investigated.

Companies House may also impose a civil financial penalty where inaccurate SIC codes have been filed.

For overseas or other company types who are not required to record a SIC code

If you are not required to record a SIC code on Companies House, you will be asked to provide both:

• the SIC code that most closely reflects your business activities

• a short explanation of how your activities align with that classification

2.4 Criterion 3: manufacture eligible products

To be eligible for BICS your business must manufacture an eligible product. These are classified using 6-digit HS codes. An HS code otherwise known as commodity code is a unique numerical reference number used to identify and classify products.

Eligible products are goods manufactured at the site that are either sold to another party or transferred for use in manufacturing activities at another manufacturing site. Where a manufacturing process contributes to the production of an eligible product, the HS code of that product should be used when determining eligibility. For example, the coating of an eligible product.

View the full list of eligible HS codes which pass the sectoral electricity intensity test.

What is a Harmonised System (HS) code?

HS codes are most commonly used in the context of international trade and customs. Businesses that export goods will typically use an 8-digit or 10-digit commodity code for the purposes of BICS, only the first 6 digits will be relevant.

There is no requirement for a business to import or export goods to be eligible for BICS. Instead, applicants must demonstrate that they manufacture eligible products corresponding to an eligible HS code at the site for which support is being claimed.

Businesses that do not export goods can search for HS codes using the following service: Trade Tariff: look up commodity codes, duty and VAT rates.

Evidence requirements

To demonstrate eligible production at the manufacturing site, applicants will be required to:

• confirm the products manufactured at the site, including both eligible and non-eligible products

• provide 6 consecutive months’ 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

• confirm which, if any, production is supported through the British Industry Supercharger Scheme (see 2.6)

Further information on evidence requirements is included in Section 5.2 and Annex A.

Any decision made by the Department for Business, Science, Innovation and Trade (BIST) regarding whether a product corresponds to a particular HS code will apply solely for the purposes of BICS and will not determine the treatment of that product for customs, tax or other regulatory purposes.

Future updates to SIC and HS classifications eligible for BICS

The government will continue to explore how this approach can be applied to ensure that BICS supports its target sectors and is not unduly constrained by the classification systems.

For the first year of delivery, eligibility will be determined solely by reference to the listed SIC and HS codes. This is the final list of eligible activities which will be reflected in the implementing legislation. The government does not intend to make any further changes to the code lists for 2027.

Alignment of BICS eligibility criteria with the Office for National Statistics (ONS) SIC 2026 framework will be considered as part of the formal review of BICS in 2030.

2.5 Criterion 4: annual grid electricity consumption

To ensure the scheme is targeted at genuine industrial customers, each manufacturing site must consume at least 33 MWh of grid-supplied electricity per year. As evidence of this, businesses will be asked to provide the most recent 6 consecutive months for which information is available within the last 12 months.

Sites must demonstrate grid electricity consumption of more than 16.5 MWh during that 6-month period, which will be used as a proxy to assess whether the site meets the annual 33 MWh threshold. This threshold remains below Ofgem’s definition of a microbusiness, which is 100 MWh per year, helping to ensure that the scheme remains accessible to a broad range of eligible businesses.

2.6 Other schemes and interactions

British Industry Supercharger Scheme

The British Industry Supercharger is a package of electricity cost relief measures for eligible GB-based Energy-Intensive Industries (EIIs). It is designed to reduce the risk of carbon leakage and support the competitiveness of UK EIIs by bringing their electricity costs closer to those faced by international competitors.

It provides eligible businesses with full exemptions from:

• the RO
• FiT
• Contracts for Difference (CfD)
• CM costs
• up to 90% compensation for Network Charging costs, such as Transmission Network Use of System (TNUoS), Distribution Use of System (DUoS) and Balancing Services Use of System (BSUoS) charges

Together, these measures provide total electricity bill support of approximately £65 to £87 per MWh. Read the guidance for the British Industry Supercharger scheme.

Businesses receiving support through 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.

This is because both schemes provide exemptions from some of the same electricity policy costs, and the same exemption cannot be applied twice. Further detail on how this works in practice is included in 4.8 under the ‘How much relief you can receive’ section.

3. How to check if you are likely to be eligible

3.1 Eligibility checker

BIST has developed an online tool designed to help businesses assess whether they are likely to be eligible for BICS. Access the BICS Eligibility Checker.

It requires a small amount of information and provides an initial indication of potential eligibility. Businesses can also register their interest in the scheme to receive updates and a notification when the application window opens.

The eligibility checker provides an initial indication of whether your business may be eligible for BICS. Final eligibility will only be determined following submission of a full application and assessment by BIST. Information entered into the checker is not saved and will not be used as part of your application. Any email address provided to receive updates will be used only for that purpose.

4. How much relief you can receive

4.1 Overview of how BICS relief is calculated

BICS support is calculated at the level of an individual manufacturing site. The level of relief a site receives depends on the proportion of electricity consumption that relates to the manufacture of eligible products and eligible manufacturing activities.

The primary purpose of this is to target BICS relief towards the most growth-driving activities and avoid over-subsidising production which is not aligned to the objectives of the scheme.

Where a site manufactures only eligible products, it will normally receive a 100% exemption, subject to verification and any adjustments required for shared meter arrangements or interaction with other schemes.

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.

In determining the level of support available to a site, businesses will need to:

• define the manufacturing site(s)

• identify total electricity supplied from the grid over the most recent 6 consecutive months for which information is available in the last 12 months for each manufacturing site, excluding electricity that is outside the scope of BICS, including local or distributed generation

• determine which products and activities are eligible at each manufacturing site and how much grid electricity they use

• identify any activity already receiving support through the British Industry Supercharger

• calculate the site’s pro-rating level and resulting exemption

The following sections explain each of these steps in more detail.

4.2 Defining the manufacturing site

For the purposes of BICS, a ‘manufacturing site’ means an 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 and, for these purposes:

(a) all places adjoining each other under the control of, or used by, that person are to be treated as an area; and

(b) two or more areas under the control of, or used by, that person separated only by a road, railway or inland waterway are to be treated as a single area.

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.

Activities for which the main purpose is not to serve manufacturing on the site or which are used by others are not included in the manufacturing site definition.

In the majority of cases, your manufacturing site will be exclusively served by one or more electricity meters under a supplier contract which is specific to your business and covers one or more such sites. The main exceptions to this are cases where third-party or landlord billing arrangements apply. See Section 4.7 for further information.

Your electricity bill for the manufacturing site for which BICS will apply should identify the site address that electricity is supplied and relevant Meter Point Administration Number(s). If you do not have MPAN(s) and instead have Balancing Mechanism Units (BMUs) these will be accepted instead where a site connects directly to the transmission network. 

There will be a free text box (limited to 2000 characters) in the application where you should give a general explanation of the site and its activities. There will also be an option to upload supporting documents, such as site maps, process diagrams or site layouts, to help explain the site and its activities. Annex B includes worked examples of manufacturing site explanation statements.

Example

A manufacturer operates production, warehousing and packaging activities from 3 adjoining buildings on the same industrial estate. As the buildings are adjoining and under the control of the same business, they are treated as a single manufacturing site.

A company operates a factory in Manchester and a second factory in Leeds. As the sites are geographically separate and not adjoining, they are treated as 2 separate manufacturing sites. Eligibility will be assessed separately for each site.

A manufacturer leases part of a larger industrial site owned by a landlord. The manufacturer only occupies and controls part of the site. For BICS purposes, only the area occupied or controlled by the manufacturer forms part of its manufacturing site. Special arrangements may apply where electricity is supplied through landlord or third-party billing arrangements.

4.3 Electricity in scope for BICS

Only electricity supplied from the grid is eligible for BICS support. This is because the policy costs that are within the scope of BICS are charged only on electricity imported from the grid.

The total amount of grid electricity consumed at a manufacturing site over a 6-month period from within 12 months from when the application is made will be the starting point for calculating the site’s pro-rating level.

Applicants will normally need to evidence this via electricity bills from a licensed electricity supplier. Where electricity is supplied through a landlord or other third party, equivalent evidence of electricity consumption and the supply arrangement will be required.

Further information on evidence requirements is included in Section 5.2 and Annex A, with further detail on third party and landlord arrangements in Section 4.7.

Local and distributed electricity generation sources

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 outside the scope of the scheme.

Where a site uses a combination of grid electricity and local or distributed generation, support may be claimed only in respect of the proportion of electricity supplied from the grid. Local and distributed generation should therefore be excluded from any calculations of electricity consumption undertaken for the purposes of BICS.

Example

A manufacturing site consumes 1,000 MWh of electricity in a year. Of this:

1. 700 MWh is imported from the electricity grid; and

2. 300 MWh is generated by on-site solar panels located behind the meter.

Only the 700 MWh of electricity supplied from the grid is in scope of BICS. The 300 MWh generated by the on-site solar installation should be excluded from any calculations of electricity consumption and will not be eligible for BICS support.

Where a site undertakes both eligible manufacturing activities and ineligible activities, the methodology described in Section 4.6 should be applied only to the 700 MWh of grid-supplied electricity to determine the proportion eligible for BICS support.

Private network or ‘private wire’ arrangements are covered separately in Section 9.

4.4 Eligible manufacturing activities

Once the amount of grid electricity consumed at a manufacturing site has been identified, businesses must determine the proportion of that electricity which is used to manufacture eligible products. Eligible products are identified using the eligible HS list.

This includes electricity used directly in the manufacturing process, as well as electricity used for supporting activities that are necessary for eligible manufacturing to take place. Supporting activities that could be included are listed as follows.

Eligible manufacturing activities include: 

(a) machinery used in the core manufacturing process that is used to produce an eligible product

(b) support activities which directly support eligible manufacturing on the site:

• machinery outside of the main production line which is necessary for production to occur
• heating, ventilation and air conditioning and space conditioning
• chillers and process cooling
• compressed air systems
• lighting 
• IT and control systems
• material handling and on-site logistics (forklifts, robotics, automated processes)
• quality control, including testing materials, substances, components or articles
• charging of electric vehicles which are used in the production process
• corporate offices for example used for sales, HR etc.
• repairs
• interim storage
• research and development activities

Ineligible activities include: 

• machinery on the production line or core manufacturing process that is used to produce an ineligible product
• supporting activities that are solely or predominantly used for ineligible production
• inter-site transport
• activity whose main purpose is not to support manufacturing on site
• activity that is for the use of others

Supporting activities are only eligible where they support the manufacture of eligible products. Supporting activities that are used solely for ineligible production are not eligible.

Where a supporting activity supports both eligible and ineligible production:

• 0% of the electricity associated with it may be treated as eligible, if 25% or less of the electricity used by that activity supports the manufacture of eligible products

• 50% of the electricity associated with it may be treated as eligible, if between 25 and 50% of the electricity used by that activity supports the manufacture of eligible products

• 100% of the electricity associated with it may only be treated as eligible if more than 50% of the electricity used by that activity supports the manufacture of eligible products

Proportion of electricity used by the supporting activity to support manufacture of eligible products	Electricity that may be treated as eligible
25% or less	0%
More than 25% but less than 50%	50%
50% or more	100%

The threshold can be applied to each supporting activity or can be calculated against the total supporting activities.

Section 4.6 outlines how to estimate the amount of electricity used for eligible activities.

4.5 Pro-rating and relief rate

For each site which produces both eligible and ineligible products, you will need to provide both:

1. The total amount of electricity purchased from the grid over the most recent 6 consecutive months for which information is available within the last 12 months (this will be shown on your electricity bill).

2. The amount of grid electricity used for eligible activities. Details of which activities are eligible, and how to estimate the relevant proportion of activity, are set out later in this guidance.

The ratio of these 2 figures determines the level of relief applied to the site, as follows:

Proportion of electricity used for eligible manufacturing	Exemption level
25% or less	0%
More than 25% but less than 50%	50%
50% or more	100%

Any manufacturing site which produces eligible products and does not produce any ineligible products or carry out any ineligible activities will receive a 100% exemption, subject to verification. Businesses will still be required to provide a statement confirming that no ineligible production takes place at the site, explain why they consider a 100% exemption applies and to provide supporting evidence as part of their application.

4.6 How to estimate the proportion of your electricity that will benefit

If your manufacturing site only produces eligible products and does not produce any ineligible products or carry out any ineligible activities, it will receive a 100% exemption (subject to verification).

In these circumstances, businesses will be required to provide a statement confirming that no ineligible production or ineligible activity takes place at the site, explain why they consider a 100% exemption applies and to provide supporting evidence as part of their application.

If your site produces both eligible and ineligible products, you must provide the following information:

1. The BICS exemption level that applies to your site

See the following on how to determine this.

2. The rationale for the approach

This should explain:

(a) How you have determined eligible activity, including:

• what eligible production takes place at the site and the associated SIC and HS codes

• what ineligible production that takes place at the site (SIC and HS codes do not need to be set out)

• what eligible supporting activity take place at the manufacturing site.

(b) How much grid electricity used in total by the manufacturing site, including:

• the total grid electricity used for the manufacturing site over the most recent 6 consecutive month period from within 12 months that you have information from when the application is made

• if the MPAN meters are shared then also total grid electricity used by the MPANs and the amount of electricity your manufacturing site has consumed over the same period

(c) How much grid electricity is used for eligible production and eligible supporting activities, including:

• most recent 6 consecutive months for which evidence is available (from within 12 months from when the application is made) from sub metering or electricity monitoring equipment. Sub-metering refers to equipment that measures electricity consumption for specific buildings, production lines, processes, activities or equipment within a site. This is only required if you have this equipment covering the relevant eligible activities during the six-month period

• if you do not have sub metering or electricity monitoring equipment, then set out what approach you have used to do this, for example estimates of average electricity use by machine, use of production data as a proxy or other approach. Underlying evidence is not required but may be sought in post-application checks

3. A declaration

You must confirm that:

• the information provided is accurate to the best of your knowledge; and

• where sub-metering or electricity monitoring equipment is available, it has been used when determining the pro rating level

The application service will include free-text boxes (limited to 2000 characters) for you to explain your rationale and upload supporting evidence. Further information is provided in Section 5.2 and Annex A on evidence requirements and Annex B contains worked example statements.

Step-by-step calculation method to determine the BICS exemption level: If you do not share a meter

Step 1: determine the total grid electricity consumption over the most recent consecutive 6 month period for which information is available (from within 12 months from when the application is made)

This will be shown on the electricity bill you receive from your energy supplier.

Do not include any electricity which you generate from onsite sources (for example, solar panels, CHP or wind turbines) as these are not in scope of BICS.

Step 2: calculate the total amount of grid electricity used to manufacture an eligible product over a 6-month period

This should be the same 6-month period as identified in Step 1. This will include electricity used in the production line plus electricity used for activities that support eligible manufacturing. These activities are set out in section 4.4. If you have submetering data or data from electricity monitoring data then this should be submitted, if not you should provide an estimate and rationale for this. 

Step 3: calculate the grid electricity used to manufacture eligible products as a proportion of total grid electricity

Divide the amount of grid electricity used to manufacture an eligible product over 6 months (Step 2) by the total grid electricity used (Step 1) and multiply by a 100.

Step 4: determine the pro rating level

Take the % you have identified in Step 4 and if it is:

• 25% or less, your pro rating level is 0%

• more than 25% but less than 50%, your prorating level is 50%

• 50% or more, your pro rating level is 100%.

Step 5: determine the BICS exemption that will apply to your site

The proportion of grid electricity that will be exempted, if eligible, from the BICS policy costs will be the pro-rating level confirmed in Step 4.

Example

Business A operates a single manufacturing site which manufactures a wide range of products. They provide electricity bills for the site covering the period March-August 2026, which show that 1000MW of grid electricity were consumed in that period.

In the same 6 months they calculate that 30% of grid electricity (300MW) was consumed by the manufacturing line to produce an eligible product, while supporting activities consumed around 20% (200MW) of the electricity on site.

Business A estimates that 30% of the grid electricity used for supporting activities was used for manufacturing an eligible product.

Therefore 50% of the electricity associated with the supporting activities will be considered in the pro rating calculation. 50% of 200MW is 100MW

The amount of electricity that would be used in the prorating calculation as eligible electricity = manufacturing an eligible product (300MW) + supporting (100MW)) = 400MW

The pro rating exemption level that would apply to the site is 50% as the proportion of electricity used for eligible production is 400 ÷ 1000 = 40% (between 25-50%).

4.7 Estimating electricity with third-party or landlord billing arrangements

In cases where sites and meters are shared between businesses, only the applicant’s share of the meter or site is counted towards the pro-rating requirement.

Responsibility for providing evidence will rest with the business applying, not the third party or landlord. Businesses are encouraged to engage their landlord or any relevant third-party owners at an early stage to ensure that any evidence required can be obtained in advance of the application.

BIST cannot compel third parties to pass through the appropriate level of exemption. If you share a meter with other businesses, it is your responsibility to work with the meter owner or other parties who use the meter, to ensure that you can provide appropriate evidence of your proportion of metered electricity, and put arrangements in place to ensure the correct exemption is passed on. Annex C contains further guidance on third party arrangements.

If your business shares a site but has its own electricity meter (MPAN)

You should only consider your own business’s activity when calculating the eligible electricity consumption on site. The resulting exemption value will be applied to the meter as if the site was exclusively used by your business.

Example

Business A and Business B operate on the same manufacturing site, with separate MPANs covering each business’s activity.

70% of Business A’s electricity use relates to eligible activity. Business B does not carry out any eligible activity.

Even though they share the site, Business A does not need to factor Business B’s activity into their calculation of eligible electricity consumption. The exemption value for Business A’s MPAN is based only on the proportion of Business A’s electricity use which is eligible (70%). Because it passes the 50% threshold, Business A receives a 100% exemption, which is applied to Business A’s MPAN.

If your business shares a site and shares an electricity meter (MPAN) with another party

You will need to determine, and provide evidence of, the proportion of the total metered electricity which relates to your business. You should only consider your own business’s activity when calculating the eligible electricity consumption on site. The resulting exemption value will be applied only to your proportion of the metered electricity.

Any other businesses using the meter, if eligible, will be able to apply for exemptions covering their own share of the meter. A step-by-step guide is set out as follows.

It should be noted that the share of the MPAN may change once all applications have been submitted and assessed. If this occurs, BIST retains the right to revise the final MPAN figure. Any revisions wills will be confirmed before April in the year the benefit starts. This could occur where exemption shares calculated at a meter level exceed 100%. This may happen if applicants sharing a meter use different six-month periods to calculate their exemption share.

If this occurs, BIST reserves the right to revise the final MPAN figure. Any revision will be confirmed before April in the year in which the benefit starts. 

To help avoid this, you should work with any third party sharing the meter to ensure that all BICS applicants at the site use the same six-month electricity consumption period when calculating their exemption share.

Example

Business C and Business D share a manufacturing site. Business C owns the electricity meter, and charges Business D for their electricity consumption. Business D consumes 40% of the total meter electricity, and Business C consumes the other 60%.

Business C has no activity which is eligible for BICS. Business D calculates that 45% of their electricity consumption relates to eligible activity, meaning that Business D is eligible for a 50% exemption.

Business D’s 50% exemption is applied to their share of the total metered electricity (40%). This results in a 20% exemption being applied to the meter in respect of Business D.

Pro-rated exemption value (50%) × applicant’s proportion of meter (40%) = 20%

If your business shares infrastructure or machinery with another party

Electricity consumption for infrastructure or machinery shared with another party is not eligible for BICS.

Step-by-step calculation method to determine the BICS exemption level: if you share a meter

Step 1: determine total grid electricity consumption of the shared meters you use

If you do not contract directly with a licensed energy supplier and instead purchase your electricity from a third party, such as a landlord, you will need to get evidence from your landlord of the total grid electricity consumed by MPANs you use over the most recent 6 consecutive month period from within 12 months that you have information from when the application is made.

Step 2: determine the total amount of grid electricity you use

This will be over the same 6 month period as set out in Step 1. This should be evidenced from the bills you pay to your landlord.

Do not include any electricity which is generated from onsite sources (for example, solar panels, CHP or wind turbines) as these are not in scope of BICS.

Step 3: calculate the total amount of grid electricity used to manufacture an eligible product over a 6-month period

This should be the same 6-month period as identified in Step 1. This will include electricity used in the production line plus electricity used for activities that support eligible manufacturing. These activities are set out in section 2.3. If you have submetering data or data from electricity monitoring data then this should be submitted, if not you should provide an estimate and rationale for this.

Step 4: calculate the grid electricity used to manufacture eligible products as a proportion of total grid electricity

Divide the amount of electricity used to manufacture an eligible product over 6 months (Step 3) by the amount of grid electricity you have consumed (Step 2) and multiply by a 100.

Step 5: determine the pro rating level

Take the % you have identified in Step 4 and if it is:

• 25% or less, your pro rating level is 0%;

• more than 25% but less than 50%, your prorating level is 50%

• 50% or more, your pro rating level is 100%

Step 6: determine the BICS exemption that will apply to your site

Take the pro rating level identified in Step 5 and multiply by your share of the meter (amount of electricity you use over 6 months (Step 2) divided by total grid electricity (Step 1).

4.8 Support under the British Industry Supercharger

As outlined earlier, 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, so where electricity consumption is already covered by a British Industry Supercharger exemption, that electricity cannot also receive support through BICS. This is because both schemes provide exemptions from some of the same electricity policy costs, and the same exemption cannot be applied twice.

You can identify support provided by British Industry Supercharger through your EIIs certificate.

If the same activity is eligible for both the British Industry Supercharger and BICS

Where an activity is eligible for both the British Industry Supercharger and BICS, businesses should note that the British Industry Supercharger generally provides a higher level of support than BICS.

If a business wishes to switch from one scheme to the other for a given activity, it must notify BIST that it wishes to terminate its existing support and apply for the alternative scheme. As support cannot be transferred directly between schemes, or an application made while support for the alternative scheme is still in place, businesses should be aware there is likely to be a gap in support during the transition.

If different activities are covered by the British Industry Supercharger and BICS

When you apply for BICS, applicants will be asked to indicate any MPANs that are wholly or partially subject to British Industry Supercharger exemptions, together with the proportion of the meter covered by those exemptions. 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.

In cases where applicants already receive support through the British Industry Supercharger, BIST will assess your application and confirm whether the site is eligible for BICS as well as Supercharger in early 2027. The final level of relief will be confirmed ahead of April 2027, allowing time to verify the relevant meter and exemption information. In determining the final level of support, BIST will seek to ensure that businesses receive the maximum support available to them across both schemes, while avoiding duplication of relief. BIST cannot exempt a meter by more than 100% so although you may have eligible British Industry Supercharger and BICS exemptions on the same meter, you may be ineligible for the full BICS exemption amount you expect to receive. An ongoing process will be implemented to enable businesses accessing both BIS and BICS to keep their exemptions updated.

Example

If a site’s MPAN has a 70% exemption via the British Industry Supercharger scheme, and subsequently receives a 100% exemption from BICS, the BICS exemption would apply only to the 30% of the meter not already exempted.

If your business shares a meter with another party and receives exemptions through the British Industry Supercharger scheme, any BICS exemption will be applied to the share of metered electricity which is used by your business and not already subject to the British Industry Supercharger exemption.

Step-by-step calculation method to determine the BICS exemption level if you receive the British Industry Supercharger

If you do not share a meter and receive British Industry Supercharger support

Step 1: determine the total grid electricity consumption over a 6 month period (from within 12 months from when the application is made)

This will be shown on the electricity bill you receive from your energy supplier.

Do not include any electricity which you generate from onsite sources (for example, solar panels, CHP or wind turbines) as these are not in scope of BICS.

Step 2: identify the amount of grid electricity that is claimed for on the MPAN meter(s) for British Industry Supercharger

Use the % identified on your EII certificate and the amount of electricity in Step 1 to calculate the amount of electricity.

Step 3: calculate the total amount of grid electricity used to manufacture an eligible product over a 6-month period

This should be the same 6-month period as identified in Step 1. This will include grid electricity used in the production line plus grid electricity used for activities that support eligible manufacturing. These activities are set out in section 4.4. If you have submetering data or data from electricity monitoring data then this should be submitted, if not you should provide an estimate and rationale for this.

Step 4: calculate the electricity used to manufacture eligible products as a proportion of total grid electricity

Divide the amount of grid electricity used to manufacture an eligible product over 6 months (Step 3) by the grid electricity used that is not covered by an EII certificate (Step 1 -Step 2) and multiply by a 100.

Step 5: determine the pro rating level

Take the % you have identified in Step 4 and if it is:

• 25% or less, your pro rating level is 0%

• more than 25% but less than 50%, your prorating level is 50%

• 50% or more, your pro rating level is 100%

Step 6: determine the BICS exemption that will apply to your site

The proportion of grid electricity that will be exempted from the BICS policy costs will be the pro-rating level confirmed in Step 5 × proportion of total grid electricity used that is not covered by EII (100-Step 2)/Step 1).

If you share a meter and receive British Industry Supercharger support

Step 1: Determine total grid electricity consumption of the shared meters you use

If you do not contract directly with a licensed energy supplier and instead purchase your electricity from a third party, such as a landlord, you will need to get evidence from your landlord of the total grid electricity consumed by MPANs you use over a 6 month period from within 12 months from when the application is made.

Step 2: determine the total amount of grid electricity you use

This will be over the same 6 month period as set out in Step 1. This should be evidenced from the bills you pay to your landlord.

Do not include any electricity which is generated from onsite sources (for example, solar panels, CHP or wind turbines) as these are not in scope of BICS.

Step 3: identify the amount of grid electricity that is claimed for on the MPAN meter(s) for British Industry Supercharger

Use the % identified on your EII certificate and the amount of electricity in Step 1 to calculate the amount of electricity.

Step 4: calculate the total amount of grid electricity used to manufacture an eligible product over a 6-month period

This should be the same 6-month period as identified in Step 1. This will include electricity used in the production line plus electricity used for activities that support eligible manufacturing. These activities are set out in section 2.3. If you have submetering data or data from electricity monitoring data then this should be submitted, if not you should provide an estimate and rationale for this. 

Step 5: calculate the grid electricity used to manufacture eligible products as a proportion of total grid electricity that is not associated with other users or covered under your EII certificate

Divide the amount of electricity used to manufacture an eligible product over 6 months (Step 4) by the amount of grid electricity you have consumed and that is not covered by your EII certificate (Step 2- Step 3) and multiply by a 100.

Step 6: determine the pro rating level

Take the % you have identified in Step 4 and if it is:

• 25% or less, your pro rating level is 0%

• more than 25% but less than50%, your prorating level is 50%

• 50% or more, your pro rating level is 100%

Step 7: determine the BICS exemption that will apply to your site

Take the pro rating level identified in Step 6 and multiply by your share of the meter (amount of electricity you use over 6 months, Step 2) minus the amount of electricity set out in your EII certificate (Step 3) divided by total grid electricity (Step 1).

4.9 Private network or ‘private wire’ supply

Some businesses receive electricity through a private network (sometimes called a ‘private wire’) rather than directly from a licensed electricity supplier.

A private network arrangement typically involves electricity being supplied through privately owned infrastructure, such as a landlord-owned network, industrial estate network or a direct connection to a generator located on or near the site.

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.

Businesses supplied through a private network that is connected to the electricity distribution network and where the relevant metering and settlement arrangements are in place may be eligible for BICS.

Some private network arrangements are connected to the electricity network through a generator import meter. Under these arrangements, settlement bodies are currently unable to verify and process levy exemptions through existing industry systems.

As a result, businesses supplied through generator import meter arrangements will not be eligible for BICS in the first year of the scheme. BIST is working with industry bodies and delivery partners on modifications that would enable these arrangements to be supported in future years of the scheme.

The exemption will be conditional on the basis that settlement bodies are able to see and verify the levies. Where settlement bodies cannot see and verify the levies, the exemption will not be applied.

Before applying

If you receive electricity through a private network or private wire arrangement, you should contact your electricity supplier to confirm your arrangement is in scope for BICS. You will need be connected to the electricity distribution network and have the relevant metering and settlement arrangements in place which show you pay the relevant BICS policy costs.

Applicants are encouraged to engage with relevant parties as early as possible to ensure that any required evidence can be obtained before submitting an application.

An officer or agent duly authorised so to declare on behalf of the BICS applicant will also be asked to confirm that the private wire arrangement is eligible for a BICS exemption.

5. How to apply

5.1 Eligibility checker

Before applying you should consider using our eligibility checker to check the likelihood of your business being eligible. See Section 3.1 for further information. As part of this service, you can also register your interest so that you are notified of updates, including when applications open.

5.2 Evidence required

Businesses will need to provide evidence to support their BICS application. The evidence required will depend on the circumstances of the business, including how electricity is supplied to the site, whether meters are shared, whether third parties are involved and whether the site produces both eligible and ineligible products.

The full list of the evidence that may be required is included in Annex A, including where relevant, examples of acceptable evidence or formats.

Evidence should meet the following principles:

• documents should clearly show they relate to the manufacturing site concerned, and that manufacturing relates to eligible products

• cover the most recent 6 consecutive months of available evidence within the 12 months before applying, where available. For electricity evidence, the 6-month period is mandatory

• provide sufficient information for BIST to assess eligibility and the level of relief claimed

We recognise that some of the information required to support a BICS application, including production and electricity consumption information, may be commercially sensitive. Information provided as part of a BICS application will be used only for the purposes of administering, monitoring and evaluating the scheme, carrying out verification and compliance activity, and meeting legal obligations. Further information on how information is stored, handled and shared, including arrangements for classified information, is set out in Section 8.4.

Applicants should ensure that all evidence is accurate, complete and uploaded at the point of application. Applications must be completed carefully, as there will be no opportunity to amend an application after it has been submitted.

Applications may be rejected where the evidence provided is incomplete, inconsistent, unclear, has been altered, or is insufficient to verify eligibility or the exemption claimed.

5.3 Application form

The first BICS application window will open on 1 October 2026 and close on the 30 November 2026 at 11:59pm. The link to the application will be available on the BICS collection page.

To help minimise the time needed to complete the online application form, we recommend that you review this guidance alongside the evidence requirements in advance and ensure that relevant records are readily available before starting the application process.

Once submitted, it will not be possible to amend your application. You can only make one application per legal entity in a year but it can cover multiple sites.

Alongside the evidence requirements set out, the individual submitting the application will need:

• a business GOV.UK One Login account. If setting this up for the first time, you will typically need a passport or driving licence to verify your identity

• to 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 able to fill in the application on behalf of the business. You will also need to know your company authentication code for this. This is a 6-digit code used for filing accounts with Companies House. It’s different from the 11-digit personal verification code issued by Companies House.

• to confirm via the initial application form that you will take appropriate action to ensure the BICS subsidy does not indirectly benefit goods activities in Northern Ireland. More information is available in the published guidance on the scope and application of Article 10 of the Windsor Framework

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 business’s behalf via the email confirmation process.

Businesses themselves are responsible for keeping their nominated point of contact up to date and may be contacted directly by BIST in relation to their application or ongoing obligations under BICS, even where a consultant or other third party has been appointed.

Where a consultant or other representative submits an application, they must identify their role and confirm the information is accurate and complete. The business remains responsible for the application, the evidence submitted, and any consequences of false or misleading information.

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.

Future updates, renewal reminders and other correspondence will be sent directly to the named business. Businesses should not assume that information will also be sent to any consultant or other third-party representative acting on their behalf.  

If the BICS application service is unavailable during normal working hours, BIST will work to restore access within two hours. If a significant service disruption occurs, updates will be provided through the appropriate communication channels. The service is not expected to have any planned outages during the application window. 

Businesses that are unable to access the online application process can download a copy of the application form which they can print and complete offline.  Completed paper applications must be received by BIST no later than 11:59pm on 30 November 2026 and should be sent to: 

British Industrial Competitiveness Scheme  

Department for Business, Innovation, Science and Trade   Old Admiralty Building Admiralty Place London SW1A 2DY 

We recommend allowing sufficient time for delivery before the application deadline. The same evidence requirements apply to paper applications as to applications submitted online.

6. What happens after you apply

6.1 Decision and notification

BIST will confirm eligibility decisions for all applicants each delivery year in January. Applicants will be notified of the outcome of their application by email.

There will be no contact between the applicant and BIST unless you use a private network or ‘private wire’ supply as described in 4.10 or where a business has activities in Northern Ireland as described in 8.3. We will only use the information you have provided as part of your application.

6.2 Exemption validity

If your application is successful, BIST will notify you confirming the level of exemption that applies to your manufacturing site(s). This exemption will be valid for 5 years, subject to a yearly declaration and mid-point review at year 2. More information on the yearly declaration is available at 7.1 and the mid-point review at 7.2.

BIST will share relevant information directly with your electricity supplier. It is expected your supplier will apply the relevant exemptions to your electricity bills from:

• April 2027 for RO and FiT

• October 2027 for CM

6.3 How relief appears on bills

The format of electricity bills varies between energy suppliers. Depending on your energy supplier, the levy charges for the RO, FiT, and CM (as well as other schemes not covered by BICS exemptions) may be:

• listed as individual line items

• grouped together as a collective line item (labelled as ‘government levies’ or ‘FiT, RO and CfD charges’, for example)

• incorporated within the overall electricity bill and not listed as a separate line item

Exemptions may also be indicated in one of several ways. When a business receives an exemption:

• the corresponding line item may show a reduced cost or a charge of zero

• it may specifically state the rate of the exemption (for example, ‘50% exempt’)

• the volume of consumption covered by the exemption and the volume of consumption still subject to the levy, may be listed as 2 separate line items

Because of this variation, some businesses may not be able to easily see the impact of BICS exemptions on their electricity bills. If you have concerns about the application or pass-through of a BICS exemption, you should first contact your electricity supplier.

SME businesses (defined as fewer than 50 employees and either less than £6.5 million turnover or £5 million balance sheet total and who have less than 200 MWh electricity usage per annum) can also contact the Energy Ombudsman to help resolve disputes regarding the pass-through of a BICS exemption.

Other businesses who are unable to resolve concerns about the pass-through of a BICS exemption with their electricity supplier should contact BIST. BIST will continue to monitor whether businesses are receiving savings on bills and assess whether more action is needed to enforce this.

6.4 Renewal

Once a site is approved for BICS, your exemption will be valid for a period of 5 years. For RO and FiT exemptions, the BICS exemption will remain valid until April of the final year. For CM exemptions, the exemption will remain valid until October of the final year.

Continued eligibility will be subject to both:

• submission of an annual declaration

• a review after the second year of support

In addition, you must notify BIST in the event of any material changes in operations which may impact your eligibility for the scheme. See Section 7.3 for further information on these responsibilities.

To continue receiving support once your BICS exemption expires, you will need to submit a renewal application between April and December of your final year of eligibility.

Further information on renewal arrangements will be provided in future updates to this guidance.

6.5 Appeals

Some applications may be found ineligible because they do not meet the scheme requirements or fail mandatory evidence checks. In these circumstances, the decision is final and there is no right of appeal.

BIST may also determine that an applicant is ineligible where the information and evidence provided does not satisfy the assessment criteria. Where a decision is eligible for appeal, the applicant will have 10 working days from the date on which BIST notifies them of the decision to submit an appeal.  

Applicants are responsible for ensuring that contact details remain accurate and that an appropriate representative is available to receive and respond to scheme communications throughout the application and appeals process. BIST will pause issuing decisions over the Christmas period from 21 December 2026 through to 4 January 2027 to account for Christmas closures. Appeal deadlines will apply as set out in this guidance unless otherwise notified by the department. 

Where possible, appeals must be submitted through the BICS digital service. Applicants who are unable to use the digital service may request an alternative form. Appeals will be decided on the basis of written reasons and supporting evidence provided. There will be no oral hearing or ongoing dialogue with the applicant during the appeals process.

Examples of decisions that are not eligible for appeal include:

• the company does not meet one or more of the scheme eligibility requirements

• the business does not exist based on evidence checks carried out based on Companies House checks

• the business is not carrying out manufacturing activities in Great Britain

• the business does not manufacture an eligible product in Great Britain

• the MPAN(s) provided do not correspond to the site(s) for which BICS support is being claimed

• the eligible product does not meet the minimum pro rating production threshold required under the scheme

• the site is supplied through a domestic meter

• the business cannot provide the 6 months’ of electricity consumption evidence required, the business has been operating for less than 6 months

• BIST cannot confirm an agent or third party has been authorised to act on behalf of the business

Businesses have one right of appeal against an eligibility decision or the calculation of their BICS support.

Appeals may only be submitted where the business believes that:

• an error has been made in assessing the evidence provided

• the calculated proportion of eligible manufacturing activity is incorrect

• the decision does not accurately reflect the facts of the application

As part of the appeals process, businesses may submit additional relevant evidence relevant to their appeal criteria to support their case. Any new evidence will be reviewed and assessed before a final decision is made.

BIST will inform the applicant of each area in which the application did not meet the eligibility requirements. The appeal must address each of these areas and explain why the applicant believes the original decision was incorrect, supported by any relevant additional evidence. Where an appeal does not satisfactorily address each relevant area, it may be rejected.

Appeals cannot be used to challenge the design or policy fundamentals of the scheme, including the list of eligible sectors, eligible products or other scheme rules set by legislation or policy.

7. Your ongoing responsibilities

7.1 Annual declarations

To ensure that the exemptions we give for BICS remain accurately targeted, you will be required to keep your eligibility information up to date through an annual declaration process.

The declaration will need to be submitted online between December and the end of January. It will take place in year 1, 3 and 4 of your eligibility period.

It will ask you to confirm that there have been no changes to:

• company details, including contact details, bank details, company trading status and any updates in line with restructuring or name changes

• site details, including location, landlord details, third-party or landlord billing arrangements, meter or MPAN details, including any meter sharing arrangements and site activity as regards BICS-eligibility and pro-rating

• production details, including grid electricity usage, eligible production and any new receipt of the British Industry Supercharger benefit

• status of activities in Northern Ireland

This will need to be signed off by an officer or agent duly authorised so to declare on behalf of the BICS applicant.

If any changes are declared, you will be asked to provide supporting evidence, in line with the evidence requirements for application.

If you do not complete an annual declaration or we find the information provided to be knowingly incorrect, your exemption will be revoked.

The annual declaration will also support evaluation of the scheme, including by asking third party-sites to confirm the amounts of BICS benefits you have received. If you are a third-party site, you will also be asked to confirm the amount of BICS benefit you have received – see Section 8 for further information on our monitoring approach.

7.2 Year 2 review

In the second year of receiving the BICS exemption, you 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. If you start receiving BICS exemptions in 2027 you will be required to do this between April and November 2028. The review supports the ongoing targeting of the scheme and helps detect any fraudulent activity.

The year 2 review will be a combination of an annual declaration and a full eligibility reassessment. Where possible, BIST will look to build on evidence you have already provided through application, annual declarations and any ad-hoc change submissions.

You will be asked to declare if there have been any changes to company and site details as outlined in 7.1, and provide supporting evidence if so.

You will also be asked to provide evidence that eligible production is still taking place and remains at the level appropriate for the granted level of pro-rating. This may include evidence of grid electricity consumption, information on shared meter usage and any new BIS claims where relevant. The evidence requirements for this will broadly mirror those required for an initial application.

If you do not complete your year 2 review or we find the information provided to be knowingly incorrect, your exemption will be revoked.

7.3 Change of circumstances or relevant information

Businesses must notify BIST as soon as possible of any material change in circumstances that could affect their eligibility, application information or entitlement to support under BICS. Failure to notify BIST of relevant changes may result in support being amended, suspended, withdrawn or other compliance action being taken.

You must notify BIST of any relevant changes, including:

• changes to contact details, including the name and address of the primary contact

• changes to your site information

• changes to meters or MPANs at your site

• changes in meter sharing arrangements (for example, where the proportion of metered electricity used by the applicant changes within the validity period)

• changes to your company legal entity, including company restructuring, mergers or acquisitions, transfers of ownership and other corporate transactions

• changes to the nature of activities at the site, including changes to the mix of eligible and ineligible activity and where a decrease in eligible production may result in a change of the proportion of exemption you should receive

• the discovery of an error in the original application which means the business is no longer eligible or has received a higher level of exemption than it was entitled to receive

• entry into any insolvency process or procedure, the closure, mothballing or permanent cessation of operations at an eligible site

• if you start carrying out activities in Northern Ireland

Changes that take place before April 2027 

When you submit your application for BICS, you must ensure the information you provide is accurate, even if you know that you will undergo one of the below changes in the near future.

There will not be a process to notify us about a change of circumstances before April 2027. The exception to this is a change in electricity supplier, which is detailed below. If you experience any other change of circumstances before April 2027, you should notify BIST of the change in April, and it will take effect from May 2027 onwards.  

In most cases, changes occurring during this period will not affect the support that you receive. However, there are certain types of change which may result in delayed exemptions. These are explained below. 

Change of supplier 

It is imperative that BIST has up-to-date electricity supplier details for each applicant to prevent delays to exemptions. 

Before exemptions begin in April 2027, eligible businesses will have the opportunity to inform us if they have recently changed electricity supplier or expect to do so before April 2027. 

You will receive a notification to confirm supplier details for each eligible business before exemptions go live. A final date for BIST to receive BIST confirmed supplier details to guarantee accurate exemptions from 1 April will be clearly communicated through this process. We will endeavour to action changes notified to us after that point, but we cannot guarantee they will take effect before 1 April. 

Changes to third-party arrangements 

Where businesses pay for some or all of their electricity via a third party (not a licensed electricity supplier), changes to these arrangements may impact exemption timelines. The impact of this type of change depends on whether or not the MPAN listed in the application still applies to an eligible business. 

If the MPAN remains valid, but the arrangements between the eligible business and third party change (e.g. a change to the agreement of which party pays the electricity bill), it will be the applicant’s responsibility to work with their third party and ensure that the exemption is passed through correctly. 

If the MPAN details change, electricity suppliers will not have the correct MPAN in their records when exemptions go live. In this scenario, the business should notify BIST of the change as soon as possible after 1 April 2027, which will allow us to update the scheme records and apply the exemption to the correct MPAN. This may result in the applicant’s exemption being delayed by one month. 

Changes to site location 

Some businesses may relocate their operations from one location to another. Where this happens, BIST needs to be able to verify that the nature of production at the new site, electricity consumption, and balance of eligible and ineligible activity have not changed during the relocation process. 

As a result, where sites relocate, this is considered equivalent to opening a new site and is subject to the same evidence requirements and process. This means that the business must provide 6 months of electricity consumption history and production evidence for the new site. Exemptions at the new site will also only take effect from the next delivery year.

If your site relocates in the middle of the exemption year, your exemption at the old site will be stopped, and you will have the opportunity to apply for an exemption at the new site in the application window for year 2. BIST is working to ensure that businesses who are eligible in year 1 but relocate can obtain exemptions in year 2, even if the relocation takes place late in the delivery year. 

Where the site and its operations remain in the same place, but the address changes (e.g. because the facility has been renamed), this is not considered a new site and can be processed as a straightforward administrative action through the normal change of circumstances process.

Revocation and amendments

BIST may revoke an exemption if a business:

• ceases to carry out specified activity or discovers an error meaning it was never eligible

• no longer meets the scheme eligibility requirements

• fails to comply with reporting requirements

Where an eligible site is ‘mothballed’ and no longer carrying out the activities that qualified it for support, BIST may revoke the exemption. If operations resume, the business may apply again during a future application window, subject to the eligibility requirements in force at that time.

Where a business restructures, merges, is acquired or otherwise changes its legal ownership, BIST may need to amend company details and issue an updated exemption where eligibility continues to be met.

Where a business receives electricity through a third party that is not a licensed electricity supplier, and that third party has been granted an exemption because it supplies the eligible business, BIST may revoke the exemption if the supply arrangement changes or ends. BIST may also revoke an exemption issued to the third party if the eligible business’s own exemption is revoked.

Changes to the level of support

Where a change in circumstances results in a business becoming entitled to a lower level of support, or no support at all, BIST will normally implement the change as soon as reasonably practicable once the relevant information has been verified.

Where a change in circumstances would result in a higher level of support being awarded, BIST will generally implement the change the following delivery year. Increased levels of support cannot normally be applied more quickly, and changes may not take effect immediately. This includes cases where a new site is opened, or where a site is wholly relocated (which, for the purposes of the scheme, is treated as equivalent to opening a new site).

You will be able to let BIST know about changes through a GOV.UK service. This guidance will be updated with further details on how to do this later this year.

7.4 Record keeping

Businesses must retain all records and supporting evidence relating to their application for at least 6 years and make them available to the Department on request. Records must be sufficient to demonstrate eligibility and substantiate any information provided as part of the application or ongoing exemption.

Failure to maintain or provide adequate records may result in recovery action, withdrawal of support, or other appropriate compliance measures.

Applicants must, on request, provide the department with access to any records, documents, evidence or information reasonably required to verify eligibility, assess compliance with scheme requirements, investigate suspected fraud or error or support assurance activities.

8. Compliance, monitoring and recovery

8.1 Monitoring and verification

To monitor the delivery and impact of BICS, BIST will collect information from participating businesses at key points throughout the scheme. This data will also be used to evaluate whether BICS is achieving its intended objectives.

BIST may undertake proportionate verification activity before and after exemptions are awarded, including both targeted and random checks where appropriate.

At the point of application

When you apply, you will be asked to provide baseline information about your business. The full list of information will be updated before the application window goes live. Where possible, BIST will seek to obtain electricity consumption data directly from energy market data sources, reducing the information you need to submit.

Annual declaration

Each year, you will be asked to confirm that your circumstances have not materially changed and to provide a brief update on information including the value of the exemption you have received. This will allow BIST to track changes in business performance over the lifetime of the scheme.

Verification

BIST may:

• verify information provided as part of an application or ongoing reporting requirements

• request additional information or supporting evidence

• conduct spot checks or site visits where appropriate

• undertake automated checks using publicly available information

8.2 Recovery and enforcement

An officer or agent duly authorised so to declare on behalf of the BICS applicant must sign off declarations which support a BICS application. This will need to confirm all information provided is true and accurate.

The scheme recognises that genuine administrative errors may occur. Where an applicant has acted in good faith and promptly corrects an identified mistake, BIST will normally seek clarification or correction before considering enforcement action.

Where BIST identifies fraud, error or over-exemption, it may take appropriate action to recover support to which a business was not entitled.

BIST reserves the right to reject applications, withhold payments or recover grant where inaccurate information is material to eligibility or entitlement, where errors are not corrected, or where false or misleading information has been provided.

The Public Authorities (Fraud, Error and Recovery) Act 2025 provides public authorities with stronger powers to prevent, detect and address fraud and error in the administration of public funds.

Under the act, public authorities may verify information, require evidence to support claims, investigate suspected fraud or error, and recover funds that have been paid incorrectly. The act also provides for enforcement action where false or misleading information has been provided.

Individuals and organisations should ensure that any information provided in support of a claim, application or request for public funding is accurate, complete and truthful.

Over-exemption

Where a business has received an over-exemption, BIST may seek to recover the overpayment. Over-exemption relating to the RO and FiT would be recovered by BIST, with CM over-exemptions recovered automatically through electricity suppliers.

This guidance will be updated with further information on how over-exemptions will be handled. Businesses may appeal decisions relating to over-exemptions and recovery amounts in accordance with the appeals process set out in Section 6.5.

8.3 Subsidy control and transparency

BICS is subject to domestic and international subsidy control requirements but is outside scope of Article 10(1) of the Windsor Framework (which applies EU State aid rules to measures affecting trade in goods or electricity between Northern Ireland and the EU).

The statutory guidance on the scope and application of Article 10 of the Windsor Framework sets out how to assess whether there is foreseeable material effect on NI-EU trade.

Where there is a risk of Article 10 of the Windsor Framework applying, eligible businesses should take steps, as outlined in the guidance, to avoid the benefit of the subsidy being passed on to the business’s activities in Northern Ireland or through the relevant goods placed on the market in Northern Ireland.

When you apply for BICS, you will be asked to indicate if your business carries out activities in Northern Ireland. BIST will follow up with businesses who answer ‘yes’ to this question, and ask them to provide more detail about their activities in Northern Ireland to assess the risk of engaging Article 10 of the Windsor Framework. Where it is deemed necessary, this follow-up process will also provide further support for affected businesses to put appropriate measures in place.

Under the regulations, the Secretary of State may decide not to grant a BICS exemption where in the opinion of the Secretary of State it would be incompatible with international law obligations in respect of subsidy control.

This would include incompatibility with obligations under Article 10 of the Windsor Framework so it is important that businesses take appropriate steps where necessary to avoid the Windsor Framework being engaged. The Secretary of State may also decide to revoke a BICS exemption where satisfied that there is a risk of incompatibility with international subsidy control obligations.

Under the UK Subsidy Control Act 2022, BIST is obligated to publish the details of the scheme itself, along with any individual awards given under the scheme which exceed £100,000 in value, on the UK Subsidy Database. For individual awards over this threshold, the information required to be published includes details of:

• the beneficiary organisation’s name

• subsidy amount received

• date of award

• the relevant region of operation (NUTS 2 level)

• size of business (based on employee count within a bounded range, for example, under 250 employees)

We recognise that some of the information businesses are required to provide at registration (such as electricity consumption data or production records) may be commercially sensitive. BIST does not intend to publish any commercially sensitive business data, unless legally required to do so (for example, under the Freedom of Information Act 2000 or Subsidy Control Act 2022).

To support transparency of the scheme, BIST intends to publish the names of all beneficiaries (but not the amounts each beneficiary has received) and periodically update this list over the lifetime of the scheme. The first publication will be made in February 2027, and the list will be updated with the names of new beneficiaries on a regular basis.

8.4 Data sharing and privacy

BIST will use information provided through the application process only for the purposes of administering, monitoring and evaluating the scheme, carrying out verification and compliance activity, and meeting its legal obligations. Information will be stored and handled in accordance with relevant data protection and security requirements.

By applying for a BICS exemption, applicants consent to the data sharing requirements of the scheme. By giving consent to BIST, an applicant is also confirming that this consent can be relied upon by settlement bodies and energy suppliers.

Where necessary, proportionate, and supported by a lawful basis, BIST may share your personal data with third parties including public authorities, professional advisers, auditors, delivery partners, settlement bodies, electricity suppliers, law enforcement bodies and organisations responsible for preventing and detecting fraud.

Applicants must not upload information classified as SECRET or above to the BICS application service. Where production evidence is genuinely classified as SECRET or above and cannot be shared through the standard application process, applicants may provide a redacted, summarised or otherwise sanitised version of that evidence. Applicants will be asked to explain why the original evidence cannot be provided, and the information submitted must still demonstrate the eligible production activities carried out at the site, and be sufficient to meet the evidence requirements of the scheme. We may consult with other government departments to assess whether redactions relate to genuine classified information. Refer to other sections of this guidance, including the Annex A, for more information about the evidence requirement and expected level of detail. 

We expect that any business which does hold information classified SECRET or above would know which information it relates to. If you are unsure whether your production evidence is classified SECRET or above, it is highly likely that this does not apply to you and there is no need for you to redact evidence

For the purposes of Data Protection, the Data Controller is the Department for Business, Science, Innovation and Trade (BIST).

You can contact the BIST DPO (Data Protection Officer) at:

Department for Business, Science, Innovation and Trade Data Protection Officer, BIST, Old Admiralty Building, London SW1A 2AY.

9. Further information

9.1 Updates to this guidance

This document will be kept under review and will be updated where required. You should revisit this guidance once the application form goes live.

To subscribe to updates relating to BICS, you can register your email via the ‘subscribe for updates’ section of the BICS Eligibility Checker tool.

10. Annex A: evidence requirements

View Annex A: British Industrial Competitiveness Scheme evidence requirements.