The questions manufacturers are really asking about BICS
When we recently hosted our BICS webinar, we expected plenty of questions.
What we didn't expect was quite how many businesses are asking exactly the same things.
From eligibility and HS codes to application timings and multi-site businesses, it's clear that while awareness of the British Industrial Competitiveness Scheme (BICS) is growing, there is still a lot of uncertainty.
Below are some of the most common questions we were asked during the webinar, together with the answers.
1. Can a business qualify for both EII and BICS?
No. Businesses cannot benefit from both schemes.
If you qualify for EII, you can’t also claim BICS. EII is generally more beneficial. Businesses that previously checked EII eligibility and did not qualify should then consider BICS instead.
2. Is BICS only for manufacturers that export?
No.
While HS commodity codes are used as part of the assessment process, exporting products is not a requirement for eligibility.
Businesses that manufacture products for the UK market may still qualify. The important factor is whether the products manufactured fall within eligible HS codes, not where they are sold.
3. Is all electricity on site eligible?
Not automatically.
Current guidance suggests eligibility is linked to the proportion of electricity used in producing eligible products.
Businesses where more than 50% of site electricity supports eligible production are expected to receive the highest level of relief, while lower percentages may receive partial support.
Further government guidance is still expected on exactly how this will be evidenced.
4. Do I need the right SIC and HS codes?
Absolutely.
Your SIC codes help determine whether your business activities are eligible, while HS codes relate to the products you manufacture.
Many businesses haven't reviewed these for years, and in some cases their Companies House SIC codes no longer accurately reflect what they do today.
Checking these now is one of the simplest ways to prepare for the application window.
5. Should I delay renewing my energy contract?
Not necessarily.
Every business is different, and contract decisions should be based on your operational requirements rather than waiting for BICS.
It remains to be seen how BICS will be applied. Our advice is a pass-through contract would be a sensible approach.
6. Can multi-site businesses apply?
This is one of the most common questions we received.
Yes,multi-site businesses can apply. Each site is assessed individually.
7. Will solar panels or licence exempt supplies affect eligibility?
Solar panels have no impact on BICS.
Licence exempt supply is awaiting clarity but doesn't look likely.
8. When should businesses start preparing?
Now.
The first application window is expected to run from 1 October to 30 November 2026.
While that might sound like plenty of time, businesses are likely to need supporting information, energy data and operational evidence before submitting an application.
Waiting until October could make the process far more difficult than it needs to be.
The biggest takeaway
Perhaps the biggest message from our webinar is this:
Don't assume you're eligible, and don't assume you're not.
BICS is considerably more complex than simply being a manufacturer. Eligibility is likely to depend on a combination of your SIC codes, HS codes and how electricity is used within your business.
Taking the time to understand your position now could make a significant difference when applications open.
Watch the webinar on demand
If you'd like a more detailed explanation of how BICS works, what manufacturers should be doing now, and the steps you can take to prepare, you can watch our BICS webinar on demand.
The webinar covers the latest guidance available, explains the application process, and answers many more of the questions manufacturers are asking.