With applications for the British Industrial Competitiveness Scheme (BICS) expected to open in October 2026, one of the first questions manufacturers are asking is a simple one: do we actually qualify? BICS is designed to reduce electricity cost exposure for UK manufacturers whose activity meets specific criteria, and the answer depends on more than sector alone.
This piece sets out the three tests BICS eligibility rests on, the sectors expected to be in scope, and what businesses can do now to establish their qualifying position.
One clarification before we go further. Qualification for BICS is a matter for each business to confirm against the published criteria. This guide sets out what those criteria involve. It does not, and cannot, determine your qualifying position on your behalf.
The three tests BICS eligibility rests on
To qualify for BICS, a business needs to meet three separate criteria, all of which apply:
- Operating within an IS-8 frontier industry, or within a qualifying foundational industry.
- Carrying out manufacturing activity as defined by the scheme, classified through published SIC and HS codes.
- Meeting the required electricity intensity threshold, calculated at site level based on the proportion of electricity used for eligible manufacturing activity.
Meeting one or two of these is not enough. All three need to hold at the site being assessed. This is where the practical work of establishing eligibility begins.
The IS-8 frontier industries
The IS-8 designation covers the eight sectors identified in the UK’s Industrial Strategy as areas of strategic priority. These sectors are the intended primary beneficiaries of BICS. The five most directly relevant to manufacturers are Advanced Manufacturing, Clean Energy, Defence, Digital and Technologies, and Life Sciences.
Presence within one of these broad sectors is not, on its own, enough to qualify. The activity carried out at the site being assessed needs to match a published SIC and HS code that falls within the scheme’s scope. Broad sector alignment starts the conversation, but classification decides the outcome.
Not sure whether BICS applies to your business?
Eligibility depends on your SIC code, your sector classification and your site level electricity intensity, and the detail is more involved than the headline savings suggest. The application window opens later this year, so it is worth checking your position now rather than waiting.
Ash Williams, our Sustainable Business Solutions Manager, can talk you through where you stand.
Book Your Review →
Qualifying foundational industries
Alongside IS-8 sectors, BICS extends to a set of qualifying foundational industries. These are the industries providing the materials, components and processes that underpin wider UK manufacturing capability. Where a business’s activity fits a listed foundational industry classification, it can qualify on the same basis as an IS-8 frontier industry.
For businesses that sit outside the headline IS-8 sectors but supply into them, the foundational industries route may be more directly relevant.
Site-level electricity use, the practical test
Even where a business meets the sector and activity criteria, qualification for BICS depends on demonstrating the proportion of electricity use at each site that is tied to eligible manufacturing activity. Sites where the majority of electricity is used for eligible activity typically qualify for higher exemption bands. Sites where eligible activity is a smaller share of consumption qualify for lower bands, and sites where eligible activity is minimal may not qualify at all.
The assessment is site-level rather than business-level. It is entirely possible for one site in a portfolio to qualify while another does not, or for two sites to qualify at different bands. This is why site-level electricity data is central to any credible eligibility assessment.
What to check before applying
Before assuming eligibility, or ruling it out, the practical steps for most manufacturers are:
- Confirm the SIC and HS codes that apply to the business’s activity, and check whether they fall within the scheme’s published classifications.
- Establish the proportion of electricity used for eligible manufacturing activity at each site, using validated consumption data.
- Assess the position relative to existing schemes, particularly EII, since exemptions cannot be duplicated.
- Identify where evidence gaps exist that could weaken a future application.
Businesses already benefiting from EII need to make the additional decision of which scheme delivers greater value before applying, as the two cannot run in parallel.
BICS eligibility looks straightforward at the sector level but comes down to a combination of classification, activity and site-level electricity data. For manufacturers whose activity clearly sits within the scheme’s scope, the question is more about securing the strongest defensible exemption band than whether qualification exists. For manufacturers in less clear-cut sectors, the classification and activity assessment is where the answer becomes clear.
Checking your BICS eligibility
Our BICS calculator provides an initial view of both eligibility and potential savings in two minutes. Where a fuller assessment is needed, including sector classification, banding analysis and evidence preparation, book a BICS eligibility review to discuss your position with our team, drawing on over 35 years of experience with EII, CCA and related exemption schemes.
Frequently asked questions
Who is eligible for BICS?
Eligibility depends on operating within an IS-8 frontier industry or a qualifying foundational industry, carrying out manufacturing activity, and meeting the required electricity intensity threshold based on published SIC and HS codes.
What are the IS-8 frontier industries?
The IS-8 designation covers the eight sectors identified in the UK’s Industrial Strategy as strategic priorities. Within a manufacturing context, the most directly relevant are Advanced Manufacturing, Clean Energy, Defence, Digital and Technologies, and Life Sciences.
How is BICS eligibility calculated at site level?
Site-level eligibility depends on the proportion of that site’s electricity use tied to eligible manufacturing activity. Sites where the majority of consumption supports eligible activity typically qualify for higher exemption bands. Sites where eligible activity is a smaller share qualify for lower bands. Establishing this requires validated site-level consumption data.
Can foundational industries qualify for BICS?
Yes. Alongside IS-8 frontier industries, BICS extends to qualifying foundational industries that supply the materials, components and processes underpinning wider UK manufacturing capability. Where a business’s activity fits a listed foundational industry classification, it can qualify on the same basis.
Can we claim BICS if we already have EII?
No. Exemptions cannot be duplicated. Businesses already benefiting from the EII exemption need to assess which scheme delivers greater value before applying, as the two cannot run in parallel. This decision benefits from a structured comparison based on the business’s specific sector, activity and site-level electricity use.