Could Your Manufacturing Business Be Eligible for the British Industrial Competitiveness Scheme (BICS)?
The British Industrial Competitiveness Scheme (BICS) is expected to become one of the most significant changes to manufacturing energy costs in recent years.
Much of the conversation has focused on the potential savings available to eligible businesses. However, the manufacturers most likely to benefit are those preparing now, rather than waiting until the application process begins.
We are frequently asked by our clients whether their business could be eligible, and the honest answer is that it is not always straightforward.
Based on our initial reviews, around 43% of the manufacturing businesses we currently support appear likely to meet the initial eligibility criteria. Just as importantly, more than half may not. That's why making assumptions, either way, could mean missing an important opportunity.
What is the British Industrial Competitiveness Scheme (BICS)?
The British Industrial Competitiveness Scheme has been introduced to improve the competitiveness of UK manufacturing by reducing electricity costs for eligible businesses.
The scheme is expected to exempt qualifying manufacturers from a number of electricity policy costs, helping to reduce operating costs and create a more level playing field with international competitors.
For many energy-intensive manufacturers, the financial impact could be significant. However, identifying whether your business qualifies is only the beginning.
Eligibility is only part of the picture
Most manufacturers are focused on whether they qualify for the scheme.
However, the more important consideration is whether they are prepared to demonstrate eligibility when the time comes.
Eligibility is expected to depend on several factors, including:
Your Standard Industrial Classification (SIC) code
The products you manufacture and their associated HS codes
Your electricity consumption
The level of eligible manufacturing activity undertaken at each site
Many businesses assume their SIC code tells the whole story. In reality, the position can be far more complex, particularly where businesses operate multiple sites, manufacture different product lines or have diversified over time.
That's why understanding your eligibility early is so important.
Why manufacturers should start preparing now
Although further guidance is expected, businesses don't need to wait before taking practical steps.
Preparing early can make the application process smoother and reduce the risk of delays once applications open.
Five things manufacturers can do today
1. Review your SIC code
Check that your registered SIC code accurately reflects your current manufacturing activities. Businesses evolve over time and records don't always keep pace.
2. Understand your product classifications
Eligibility is also expected to consider the products you manufacture through HS codes. It's worth confirming these now rather than trying to identify them later.
3. Review your electricity consumption
Understanding your historical electricity usage will help you assess whether BICS could be relevant and prepare any supporting information that may be required.
4. Consider each site individually
If your business operates across multiple manufacturing sites, eligibility may not be identical across every location. Reviewing each site separately can provide a clearer picture.
5. Gather supporting information
Having operational data, energy information and relevant business records readily available will help you move quickly once the application process begins.
BICS should form part of a wider energy strategy
While the British Industrial Competitiveness Scheme has understandably attracted attention, it represents just one opportunity to improve manufacturing energy costs.
Many manufacturers remain heavily focused on negotiating the unit price they pay for electricity. In reality, non-commodity costs now account for an increasingly significant proportion of an electricity bill.
Forward-thinking manufacturers are taking a broader approach by reviewing:
Energy procurement strategy
Electricity contract structure
Non-commodity costs
Energy risk management
Consumption trends and forecasting
Opportunities to improve operational efficiency
BICS has the potential to deliver meaningful savings, but it works best when considered alongside a wider manufacturing energy strategy.
Frequently Asked Questions
Which manufacturers are likely to qualify for BICS?
Eligibility is expected to depend on several factors, including your SIC code, the products you manufacture, electricity consumption and the level of qualifying manufacturing activity carried out by your business.
Is eligibility based solely on SIC codes?
No. While SIC codes are expected to play an important role, they are only one part of the assessment. Product classifications, energy usage and manufacturing activities are also expected to be considered.
Should businesses wait until the application process opens?
No. Preparing now gives businesses time to review their position, identify any gaps in information and gather the evidence likely to be required.
Could businesses with multiple manufacturing sites qualify?
Potentially. Multi-site businesses may need to review each location individually as eligibility could vary depending on the activities undertaken at each site.
How Greenfields Energy Group can help
For most manufacturers, the biggest challenge isn't understanding what BICS is. It's finding the time and resource to manage the process.
Reviewing eligibility, identifying the correct SIC and HS codes, gathering supporting evidence and navigating the application all take time. For finance and operations teams already juggling competing priorities, it's another job on an already full list.
That's where we come in.
We'll manage the entire process on your behalf, taking the headache away from your team and giving you confidence that everything has been handled properly.
Our BICS service includes:
Reviewing your business to assess potential eligibility.
Identifying the relevant SIC and HS codes.
Gathering and reviewing the information needed to support your application.
Preparing and managing the application process from start to finish.
Liaising with the relevant parties on your behalf.
Keeping you informed throughout the process, without creating unnecessary work for your team.
Our aim is simple: to make the process as straightforward as possible, allowing you to stay focused on running your business while we take care of the administration.
As with all our services, you'll have direct access to experienced people who understand both the energy market and the pressures facing manufacturers. If we believe you're eligible, we'll manage the process from start to finish. If we don't, we'll tell you honestly.
Over the coming months we'll also be sharing practical insights, bite-sized videos and webinars to help manufacturers understand the changing energy landscape, including updates on the British Industrial Competitiveness Scheme and other developments affecting manufacturing energy costs.
If you'd like to find out whether your business could benefit from BICS, get in touch with our team. We'll be happy to have an initial conversation and explain how we can help.