BICS and the British Industry Supercharger: What the new guidance means for manufacturers

August 12, 2026

The Government has now published detailed guidance for businesses planning to apply for the British Industrial Competitiveness Scheme (BICS), ahead of applications opening on 1 October 2026.

The guidance provides much-needed clarity on how BICS will work in practice, including an important point for manufacturers already receiving support through the British Industry Supercharger: being part of the Supercharger does not automatically rule you out of BICS.

However, where a business could qualify for both schemes, understanding how they interact will be important. The same electricity consumption cannot receive the same relief twice, but there may be circumstances where BICS can provide additional support alongside an existing Supercharger exemption. Read this article to find out more.

What is the British Industry Supercharger?

The British Industry Supercharger (also known as EII) is a package of electricity cost relief measures for eligible Energy-Intensive Industries in the UK.

It provides qualifying businesses with full exemptions from a number of electricity policy costs, including the Renewables Obligation (RO), Feed-in Tariffs (FiT), Contracts for Difference (CfD) and Capacity Market (CM) costs. It also provides up to 90% compensation against certain network charges.

In simple terms, it is designed to reduce the electricity cost burden on energy-intensive industries that compete internationally.

What is British Industrial Competitiveness Scheme (BICS)?

BICS is a recently announced scheme aimed at a broader group of eligible manufacturers within the Government’s Industrial Strategy sectors and associated foundational industries.

From April 2027, qualifying businesses will receive exemptions from the indirect costs of the Renewables Obligation and Feed-in Tariffs, with a Capacity Market exemption following from October 2027.

Eligibility is assessed at manufacturing-site level and depends on a combination of factors, including the company’s SIC code, the products manufactured, and the amount of grid electricity consumed at the site.

Because some of the electricity policy costs covered by BICS are already included within the British Industry Supercharger, there is a clear overlap between the two schemes.

So, what happens if you qualify for both?

Can Supercharger recipients apply for BICS?

Yes.

The latest guidance confirms that businesses receiving support through the British Industry Supercharger can also apply for BICS, provided they meet the BICS eligibility criteria.

The important restriction is that a business cannot receive relief for the same activity under both schemes.

Where electricity consumption is already covered by a Supercharger exemption, BICS cannot apply the same exemption to that electricity again.

That does not necessarily mean there is no further opportunity.

For manufacturers with several activities, mixed production or only partial Supercharger coverage, there may still be electricity consumption that falls outside the existing exemption.

What if the same activity qualifies for both schemes?

Where the same manufacturing activity is eligible for both BICS and the British Industry Supercharger, the Government guidance notes that the Supercharger will generally provide a higher level of support.

For most businesses, the more relevant opportunity is therefore not switching schemes, but identifying whether BICS could apply to electricity consumption or manufacturing activities that are not already covered by the Supercharger.

Where BICS can add to existing Supercharger support

For some manufacturers, BICS may provide additional relief alongside the British Industry Supercharger.

If part of a site’s electricity use is already covered by the Supercharger, BICS may still apply to the remaining eligible consumption that sits outside that exemption.

This is particularly relevant for businesses with mixed manufacturing activities or sites where only part of the electricity use is currently covered.

The key question is therefore:

What electricity consumption is already supported, and is there anything left that could qualify for BICS?

A practical example: 70% Supercharger, 30% potentially covered by BICS

The Government guidance gives a useful example.

If an MPAN already receives a 70% exemption through the British Industry Supercharger, and the site qualifies for a 100% BICS exemption, BICS could apply to the remaining 30% of electricity consumption not already covered.

This could be particularly relevant for manufacturers with mixed activities or sites where only part of their electricity use is currently supported.

The key point is that an existing Supercharger exemption does not necessarily mean there is no further opportunity under BICS.

Why the calculation needs careful review

For businesses already receiving Supercharger support, assessing the BICS opportunity starts with understanding exactly what is already being relieved.

The percentage of electricity covered by the Supercharger can be identified through the company’s EII certificate. BICS then looks at the grid electricity consumption that remains outside that exemption and assesses how much of that remaining consumption relates to eligible BICS manufacturing activity.

This can become more complex where a manufacturer operates:

  • multiple production activities
  • eligible and ineligible product lines
  • several MPANs
  • shared meters
  • partially exempt sites

The guidance sets out a specific calculation methodology for these circumstances. Applicants must identify the electricity already covered by their EII certificate and calculate eligible BICS activity against the remaining grid electricity consumption.

This is why looking at the two schemes separately can give an incomplete picture.

What should manufacturers do now?

For businesses already benefiting from the British Industry Supercharger (EII), the publication of the new guidance is a good reason to review the position before the BICS application window opens.

The starting point should be to understand:

  • which sites and MPANs currently receive Supercharger support
  • what percentage of electricity is covered by the existing EII certificate
  • whether other manufacturing activities at those sites fall within BICS
  • whether any grid electricity consumption currently sits outside the existing exemption

BICS applications open on 1 October 2026 and close at 11:59pm on 30 November 2026, so businesses have a relatively short window to establish their position and prepare an application.

How Bonham & Brook can help

BICS may be new, but the work required to build a strong application is familiar territory for our Energy team.

We work closely with the Department for Business, Innovation, Science and Trade (DBIST) and have extensive experience gathering and analysing energy data in the same way now set out in the BICS guidance.

Energy relief is a specialist area for us. Our team works with energy-intensive businesses every day, combining technical scheme knowledge with a strong compliance focus to make sure applications are accurate, well evidenced and built to stand up to scrutiny.

Just as importantly, we do the heavy lifting. Our process is designed to keep the time commitment for your team as low as possible while we manage the detail behind the application.

With BICS applications opening on 1 October 2026, now is the time to understand how the scheme could interact with your existing support.

Talk to our Energy team about preparing for BICS. We offer a free initial BICS eligibility consultation to help you understand whether your business could qualify.

Contact Us

 

Shannon Shaw

Senior Commercial Manager – Energy

 

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