BICS Eligibility Confirmed: What UK Manufacturers Need to Know

The Government has now confirmed the final list of eligible activities for the British Industrial Competitiveness Scheme (BICS), bringing greater clarity for manufacturers ahead of the scheme's introduction in 2027.

The British Industrial Competitiveness Scheme represents a significant expansion of Government support aimed at reducing industrial electricity costs in Great Britain.

Following consultation, the Government updated the eligible Standard Industrial Classification (SIC) and Harmonised System (HS) codes on 8 July 2026, adding four SIC codes and nine HS codes. The Government has stated that this is the final list of eligible activities for 2027 and that these classifications will be reflected in the implementing legislation.

For manufacturers potentially within scope, attention can now move from speculation about which industries will be included towards assessing whether individual businesses are likely to meet the full eligibility requirements.

What is the British Industrial Competitiveness Scheme?

BICS is intended to reduce electricity costs for qualifying businesses operating within strategically important manufacturing sectors.

Eligible businesses are expected to receive exemptions from the indirect costs associated with:

• the Renewables Obligation (RO);

• Feed-in Tariffs (FiT); and

• the Capacity Market (CM).

RO and FiT relief is scheduled to begin from April 2027, with Capacity Market relief following from October 2027.

The scheme is targeted at manufacturing frontier industries within the Government's Industrial Strategy growth sectors and foundational manufacturing industries supplying important inputs into those industries.

Which industries are included?

Eligibility is being defined using a combination of SIC and, where relevant, HS product classifications.

These classifications cover manufacturing activities across a range of strategically important sectors.

However, identifying an apparently relevant SIC or HS code should be considered the starting point of an eligibility assessment rather than confirmation that a business will qualify.

The Government's approach considers the nature of the manufacturing activity being undertaken, the products being manufactured and other eligibility requirements.

Businesses will also need to satisfy the applicable electricity-intensity requirements.

Why the July announcement matters

Until recently, businesses assessing BICS had to do so against classifications that remained subject to consultation.

That has changed.

The Government has now described the July 2026 list as the final list of eligible SIC and HS activities for 2027.

This provides businesses with a much firmer basis on which to undertake an initial BICS eligibility assessment.

For manufacturers operating within potentially eligible sectors, there is therefore a useful window before applications begin to consider:

• the activities undertaken by the business;

• the products manufactured;

• the appropriate classifications;

• the structure of manufacturing operations;

• electricity consumption; and

• whether the relevant electricity-intensity requirements are likely to be met.

BICS eligibility may require more than checking a SIC code

One potential misconception surrounding the new scheme is that BICS eligibility can be determined simply by looking up a company's registered SIC code.

The position is more nuanced.

Government guidance distinguishes between different categories of manufacturing and, for certain businesses, considers both the industry classification and the products being manufactured.

The electricity-intensity test introduces another important element.

This means two businesses operating in apparently similar sectors could potentially reach different eligibility outcomes depending upon their activities and circumstances.

For businesses with multiple activities, products or sites, the assessment may become more involved.

How should manufacturers prepare?

There is no need for businesses to wait until the application window opens before considering BICS.

Early preparation can provide considerably more time to understand potential eligibility and identify areas requiring further investigation.

This is particularly relevant where a business:

• manufactures several different product categories;

• operates across multiple sites;

• carries out both manufacturing and non-manufacturing activities;

• has undergone restructuring or acquisition;

• has significant variations in electricity consumption; or

• is uncertain which SIC or HS classification best reflects its activities.

Resolving these issues early can make the subsequent application process considerably clearer.

Our view

The finalisation of the eligible activity list represents an important milestone for BICS.

The scheme potentially brings electricity-cost support to a substantially wider manufacturing population than the existing Energy Intensive Industries arrangements.

However, the breadth of the scheme should not be mistaken for simplicity.

Classification, manufacturing activity and electricity intensity will all need to be considered, and businesses should avoid assuming that the presence of an eligible SIC code automatically establishes entitlement.

For potentially eligible manufacturers, 2026 should therefore be viewed as the preparation year for BICS.