Get in touch
Please contact us to discuss how working with Myriad can maximise and secure R&D funding opportunities for your business.
Contact usBICS is open for applications until 30 November 2026. See who is eligible, how much electricity relief is available and what evidence you need to apply.
The British Industrial Competitiveness Scheme (BICS) opened for applications on 1 October 2026, giving eligible manufacturers in Great Britain the chance to be exempted from some of the policy costs built into their electricity bills. The application window closes on 30 November 2026, and an application can't be amended once it has been submitted.
This post sets out who is eligible, how much relief is available, what evidence you need and what the scheme asks of you once an exemption is in place.
BICS exempts eligible manufacturers from the indirect costs of three electricity policies: the Renewables Obligation (RO), Feed-in Tariffs (FiT) and the Capacity Market (CM). These costs are charged to electricity suppliers and passed on to businesses through their bills, so the exemption reduces what you pay for grid electricity at an eligible site.
The scheme applies in Great Britain only. Energy policy is devolved in Northern Ireland, so sites there are outside its scope.
The first application window runs for two months, and relief doesn't reach your bills until 2027.
|
Date |
What happens |
|
1 October 2026 |
Application window opens |
|
30 November 2026 |
Application window closes |
|
January 2027 |
Eligibility decisions confirmed |
|
April 2027 |
RO and FiT exemptions begin |
|
October 2027 |
CM exemption begins |
A business needs to meet four tests at the same time:
Only electricity supplied from the grid counts. Electricity from on-site generation, such as behind-the-meter solar or combined heat and power, is not eligible.
The sector and product tests need the closest attention, because they depend on specific codes rather than a general description of what your business does.
The level of exemption depends on the proportion of a site's electricity that is used for eligible manufacturing.
|
Electricity used for eligible manufacturing |
Exemption level |
|
25% or less |
0% |
|
More than 25% but less than 50% |
50% |
|
50% or more |
100% |
A site that makes only eligible products receives a 100% exemption, subject to verification. Because the levels step rather than slide, the proportion you evidence for each site matters.
For example:
A site where 60% of electricity is used for eligible manufacturing receives a 100% exemption. A site where that figure is 40% receives 50%, and a site at 25% or below receives nothing.
Relief is applied through your supplier, and how it appears varies. The RO, FiT and CM charges may be separate line items, grouped together, or included in the overall price.
Applications are made online through a government portal, so it's worth gathering the following before you start:
The guidance is clear that evidence needs to be complete, consistent and clearly linked to the manufacturing site. Applications can be rejected where evidence is incomplete, inconsistent, unclear or insufficient to verify eligibility.
A consultant or adviser can submit on your behalf, provided a Companies House officer confirms their authority by email.
An approved exemption lasts for 5 years. You'll make a yearly declaration confirming that nothing material has changed in years 1, 3 and 4, and the scheme includes a full review in year 2. You must also tell the department about material changes as they happen, including changes to meters, sites, company structure through a merger or acquisition, and the mix of eligible and ineligible activity.
Manufacturers investing in new products and processes may also have an R&D tax credit position worth reviewing, and our guide on how manufacturers can claim R&D tax credits explains where to start.
If you manufacture in Great Britain and haven't yet tested your eligibility, now is a good moment to do it, while there's still time to prepare robust evidence. Myriad's Energy Relief Vault platform offers a free indicative assessment.
BICS is open for applications until 30 November 2026. See who is eligible, how much electricity relief is available and what evidence you need to apply.
HMRC's 2026 R&D tax credit statistics show claims down 17% but relief up 5% to £8.2 billion. See what is driving the shift and what it means for your claim.
Myriad has launched Energy Relief Vault, a platform helping UK manufacturers claim industrial energy relief schemes. BICS applications open 1 October 2026.
Please contact us to discuss how working with Myriad can maximise and secure R&D funding opportunities for your business.
Contact us