The three tests, in short

To qualify for BICS, a business needs to satisfy the following:

1. Sector - your manufacturing activity falls within an eligible SIC (2007) code, one that has already passed the government's sector-level electricity-intensity test.
2. Product - you manufacture at least one eligible product, identified by Harmonised System (HS6) product codes.
3. Site activity - enough of the electricity consumed at a site relates to manufacturing eligible products for that site to qualify for an exemption.

The important thing to understand up front: there is no separate electricity-intensity test for your individual business or site. Electricity intensity is tested at sector level by government, and only SIC codes that exceed the relevant threshold are on the eligible list in the first place. So your job is to confirm your activity sits within an eligible sector and product, then work out how much of each site's electricity qualifies. Because that last part applies per site, the honest answer to "are we eligible?" is often "we may qualify, but the level of relief differs from site to site." Here is each test in detail.

Test 1: Your sector (SIC codes)

BICS is aimed at specific manufacturing sectors - the government's Industrial Strategy priority "frontier" industries, plus the "foundational" industries that supply them. Crucially, these sectors have already been selected by government using a sector-level electricity-intensity test: frontier manufacturing sectors with electricity intensity over 0.9%, and foundational manufacturing sectors over 2.7%. If your activity sits within an eligible sector, that sector-level threshold has already been met - you do not calculate it yourself.

Eligibility here is defined by the relevant Standard Industrial Classification (SIC 2007) code for your manufacturing activity. The government uses the SIC code under which a business is registered in Companies House data to help identify eligible businesses, so it is worth checking - but the Companies House record alone does not settle eligibility. You still need to evidence genuine eligible manufacturing activity and eligible products, and simply changing an inaccurate registered code would not make an otherwise ineligible operation eligible.

The list of eligible SIC and HS codes was updated on 8 July 2026, and government has confirmed this is the final list of eligible activities for 2027, with no further changes intended. The sectors in scope are broad and granular - frontier industries across areas such as aerospace, automotive, batteries, clean energy, defence, digital technologies and life sciences, alongside foundational manufacturing including chemicals, composites, critical minerals, materials, steel and electricity-network components.

The practical first step is simple: check the SIC code registered for your business and see whether it appears on the qualifying list. If your registered code does not reflect what you actually manufacture - which is more common than you might expect - that is worth resolving early, because it can affect your position.

Test 2: Your products (HS codes)

Sector alone is not sufficient. The scheme also looks at what you actually make, using Harmonised System (HS6) product codes. These codes are predominantly used to classify imports and exports, but you do not need to import or export anything to qualify for BICS - they are simply the classification the scheme uses to identify eligible products. An applicant must manufacture at least one product on the eligible HS6 list.

This second test links the qualifying activity to real products rolling off your line. A business might sit in an eligible sector but manufacture a mix of qualifying and non-qualifying goods, so identifying the HS codes for your products is essential to understanding how much of your activity counts.

Mapping your products to HS6 codes accurately is one of the more technical parts of preparing - and getting it right underpins both eligibility and how much relief you ultimately receive.

Test 3: Your site's eligible electricity use

This is the test most people misunderstand, so it is worth being precise. BICS does not apply an electricity-intensity test to your individual business or site. Government has been explicit: "there will not be an electricity-intensity test for individual businesses." That test is done at sector level - it is how the eligible SIC list was drawn up in the first place (frontier sectors over 0.9%, foundational over 2.7%). If your sector is on the list, that threshold is already satisfied.

What is assessed at your end is how much of the electricity consumed at each site relates to manufacturing eligible products. That share determines whether a site qualifies, and for how much relief:

• More than 25% but less than 50% of a site's electricity used for eligible manufacturing: 50% exemption
• 50% or more: 100% exemption
• 25% or less: the site does not qualify

So the practical work is not calculating an intensity ratio - it is evidencing, site by site, what proportion of your electricity goes to eligible production. Each site must also use at least 33 MWh of grid-supplied electricity a year.

Why eligibility is assessed site by site

This is the point manufacturers most often get wrong. BICS eligibility and relief are worked out per site, not across a whole company.

That means two facilities under the same ownership can end up in completely different positions - one qualifying, one not, or each in a different exemption band - depending on what each makes and how it uses electricity. For a multi-site business, "are we eligible?" is really a series of separate questions, one per site.

This site-by-site logic also drives how much relief you get. Where a site makes a mix of eligible and non-eligible products, relief is apportioned:

• More than 25% but less than 50% of a site's electricity used for eligible manufacturing: 50% exemption
• 50% or more: 100% exemption
• 25% or less: the site does not qualify

So establishing, and being able to evidence, exactly how much of each site's electricity goes to qualifying production is central to the whole assessment.

A quick self-check

You are likely to be worth assessing properly for BICS if:

• Your business operates in an industrial or manufacturing sector
• You manufacture, fabricate, process or assemble physical products (rather than being a service-only business)
• Electricity is a significant part of your operating costs
• You have one or more sites with substantial electricity consumption

If that sounds like your business, the next step is to confirm the detail - your exact SIC code, your product HS codes, and your site-level electricity use - against the scheme's criteria.

One important caveat: you can only claim one scheme

Even if you are eligible for BICS, it may not be your best route. Businesses eligible for the British Industry Supercharger cannot also receive BICS for the same exemptions, because the same relief cannot be provided twice. The Supercharger covers the RO, FIT and Capacity Market costs that BICS covers, and additionally covers Contracts for Difference costs and provides Network Charging Compensation - so where a business could fall within both schemes, government recommends the Supercharger, as it provides a higher level of support. Checking eligibility for BICS should therefore go hand in hand with checking whether the Supercharger route suits you better.

How eyebright helps you check

Working out eligibility across all three tests, for every site, is exactly the kind of detailed assessment that is easy to get wrong and costly to get wrong late. eyebright helps by:

• Confirming your classification - checking your SIC code and mapping your products to HS codes accurately.
• Assessing each site - working out electricity intensity and how much of each site's consumption qualifies, so you know which sites are in and in which band.
• Checking the alternatives - confirming whether BICS or another relief scheme is the better route before you commit.

Frequently asked questions

Who is eligible for BICS?

A business must operate within an eligible manufacturing sector (defined by SIC code) and manufacture at least one eligible product (defined by HS6 code). The electricity-intensity test is applied by government at sector level, not to individual businesses - so if your sector is on the eligible list, that threshold is already met. How much relief each site receives is then determined by the share of its electricity used for eligible manufacturing.

How do I know if my SIC code qualifies for BICS?

Check the SIC code registered for your business at Companies House against the scheme's published list of qualifying sectors. The Companies House record helps identify eligible businesses but does not settle eligibility on its own - you still need to evidence genuine eligible manufacturing activity and products. If your registered code does not match what you actually manufacture, it is worth resolving early.

What are HS codes and why do they matter for BICS?

Harmonised System (HS6) codes classify the products you manufacture. BICS uses them to confirm that what you actually make is eligible, not just the sector you sit in. Mapping your products to HS codes accurately is essential to establishing eligibility and relief.

Is BICS eligibility decided per company or per site?

Per site. Two facilities under the same ownership can get different outcomes depending on what each makes and how it uses electricity. Relief is also apportioned by how much of each site's electricity goes to eligible manufacturing.

Is there an electricity intensity test for my business?

Not for your individual business or site. Government applies the electricity-intensity test at sector level - frontier manufacturing sectors over 0.9% and foundational sectors over 2.7% - to decide which SIC codes make the eligible list. If your sector qualifies, that test is already satisfied. What you evidence at your end is how much of each site's electricity is used for eligible manufacturing, and each site must use at least 33 MWh of grid-supplied electricity a year.

Can a business be eligible for BICS but better off on another scheme?

Yes. Businesses eligible for the British Industry Supercharger cannot also receive BICS for the same exemptions. The Supercharger generally provides more support, so where a business qualifies for both, government recommends the Supercharger. It is worth checking eligibility for both before committing.