EII vs BICS: Which Energy Relief Scheme Is Right for Your Business?
There is more than one way for a UK manufacturer to cut the policy costs on an electricity bill. The new British Industrial Competitiveness Scheme (BICS) is the one making headlines, but the Energy Intensive Industries (EII) scheme - delivered through the British Industry Supercharger - has been live since 2024 and, for the businesses that qualify, delivers deeper savings today. The catch: you cannot claim both, and if you already qualify for EII you may be shut out of BICS entirely. This guide explains the difference and how to work out which route is yours.
Please note: this article is based on government guidance available at the time of writing. Both schemes are subject to ongoing development, and BICS in particular remains subject to an ongoing government consultation, so details - including the scheme dates - may change. We monitor developments and update our guidance accordingly.
The short version
- EII / British Industry Supercharger offers deeper relief - up to 100% exemption from several levies plus network charge compensation - but has stricter eligibility, aimed at the most electricity-intensive industries. It currently supports around 550 businesses.
- BICS reaches a far wider group. It exempts eligible manufacturers from up to 100% of the relevant RO, FiT and Capacity Market costs (pro-rated by how much of each site's electricity is eligible), which government describes as cutting an eligible firm's electricity bill by up to around 25%, from 2027. It is expected to cover more than 10,000 businesses.
- You can only benefit from one. The government has indicated that businesses already eligible for or receiving the Supercharger will be excluded from BICS, to avoid double exemption.
So the real question is not "should I apply for BICS?" but "which scheme is my business actually eligible for, and which delivers the most?"
What is the EII scheme / British Industry Supercharger?
The British Industry Supercharger, live since April 2024, is a package of relief for Energy Intensive Industries (EIIs). To benefit, a business holds an EII certificate. It has three main parts:
- Up to 100% exemption from the Renewables Obligation, Feed-in Tariff and Contracts for Difference levies.
- 100% exemption from Capacity Market charges.
- Network Charging Compensation, which rose to 90% of eligible network charges for costs incurred from April 2026 (up from 60%). Note this compensation is paid around 12 months in arrears, so the first payments reflecting the 90% uplift are expected after April 2027.
Together these cover some of the largest non-commodity items on an electricity bill, and for a qualifying high-usage site the saving is substantial - and the levy exemptions apply now, ahead of BICS. (The enhanced 90% network compensation is paid in arrears, so that element reaches bills a little later.)
The trade-off is tighter eligibility. Broadly, a business must operate in an eligible sector and pass a business-level electricity intensity test - electricity costs making up a significant share of gross value added, with the business-level threshold set at 20%. That is considerably stricter than the sector-level thresholds used for BICS, which is why the Supercharger currently supports only around 550 businesses.
What is BICS, and how does it differ?
The British Industrial Competitiveness Scheme (BICS) exempts eligible manufacturers from up to 100% of the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market, pro-rated by how much of each site's electricity is used for eligible manufacturing. Government describes this as cutting an eligible firm's electricity bill by up to around 25%, worth roughly £35-£40 per MWh, from 2027 - so the "25%" is the effect on the overall bill, not the depth of the exemption itself.
The defining difference is reach. BICS applies its electricity-intensity test at sector level, with lower thresholds than EII - over 0.9% for frontier manufacturing sectors and over 2.7% for foundational ones - and crucially there is no separate business-level intensity test. This deliberately opens relief to a much wider base: government expects BICS to cover more than 10,000 businesses, against the Supercharger's ~550. In other words, BICS is the route for the large group of manufacturers who are energy-intensive enough to feel the pain, but whose business does not clear the strict 20% EII bar.
The comparison at a glance
| EII / British Industry Supercharger | BICS | |
|---|---|---|
| Live from | April 2024 (available now) | RO & FiT April 2027; Capacity Market October 2027 |
| Depth of relief | 100% exemption from specified policy costs, plus 90% network-charge compensation | Up to 100% of RO, FiT & CM costs (site pro-rated) - around a 25% / £40 per MWh bill reduction |
| Levies covered | RO, FiT, CfD, Capacity Market + network charges | RO, FiT, Capacity Market |
| Eligibility | Eligible sector + a 20% business-level electricity intensity test | Eligible sector (sector-level intensity test) + SIC/HS activity and site gateways; no business-level intensity test |
| Scale | ~550 businesses | 10,000+ businesses expected |
| How you claim | Hold an EII certificate; network compensation paid in arrears | Eligibility window 1 Oct-30 Nov 2026 |
The rule that catches people out: you can only claim one
This is the point that matters most, and the one most often missed. A business cannot receive exemptions under both BICS and the EII/Supercharger route for the same costs. More specifically, the government has indicated that businesses already eligible for or in receipt of the Supercharger will be ineligible for BICS.
That has a clear practical consequence:
- If your business qualifies for EII, that is almost certainly your route - it is deeper and available now - and BICS is not open to you.
- If your business does not clear the stricter EII thresholds, BICS is likely the relevant scheme, and the 2026 eligibility window is the one to prepare for.
So the first job is not to prepare a BICS application. It is to establish which scheme you qualify for in the first place - because getting that wrong means either leaving deeper EII relief on the table, or preparing for a BICS window you were never eligible for.
How to work out which route is yours
There is no shortcut around the assessment, but the logic is straightforward:
- Check EII eligibility first. Because EII is deeper and available now, it is the better outcome where a business qualifies. Test your sector and your business-level electricity intensity (the EII threshold is 20% of gross value added) against the EII criteria.
- If you qualify for EII, pursue it - and note that this excludes you from BICS.
- If you do not qualify for EII, assess BICS. With its lower sector-level thresholds and no business-level intensity test, BICS may well apply where EII does not. Note the two BICS gateway conditions: your business must be registered on Companies House under an eligible SIC code, and each site must import more than 33 MWh of grid electricity a year. The 2026 window means preparation should start now.
- For multi-site businesses, check site by site. BICS in particular is assessed per site, so the answer may differ across your estate.
Why independent advice matters here
This is exactly the kind of decision where an independent adviser earns their fee. The schemes have different tests, different depths, different timelines and a mutual-exclusivity rule - and the stakes are the difference between claiming the deepest relief available and missing out. A broker tied to a single product cannot give you a straight answer on which route is best; an independent consultancy can.
eyebright helps manufacturers:
- Establish eligibility for both schemes - testing your sector, intensity and site-level position against EII and BICS criteria.
- Choose the right route - modelling which scheme delivers the most for your business, and in what order to act.
- Prepare and manage the application - whether that is an EII certificate now or a BICS application ahead of the 2026 window.
Because we are wholly independent, our only interest is the outcome that saves your business the most - not steering you toward one scheme over another.
Not sure which scheme is right for you?
Request an eligibility check and we will assess your business against both routes and tell you honestly which delivers the most.
Request an eligibility checkFrequently asked questions
Can I claim both BICS and the EII scheme?
No. A business cannot receive exemptions under both BICS and the Energy Intensive Industries scheme or British Industry Supercharger for the same costs. The government has indicated that businesses already eligible for or receiving the Supercharger will be excluded from BICS.
What is the difference between EII and BICS?
EII (delivered through the British Industry Supercharger) offers deeper relief - up to 100% exemption on several levies plus network compensation - with a stricter 20% business-level intensity test, and is available now. BICS also exempts up to 100% of the relevant RO, FiT and Capacity Market costs (site pro-rated, cutting the bill by up to around 25%) from 2027, but reaches a much wider group of manufacturers because its intensity test is set at sector level, with no business-level test.
Which scheme saves more money?
For businesses that qualify, EII generally delivers deeper savings and is available now. BICS delivers a smaller percentage but is open to a far wider group who do not meet the stricter EII thresholds. The right answer depends on which your business is eligible for.
If I qualify for EII, can I still apply for BICS?
No. If your business is eligible for or receiving the British Industry Supercharger, you are expected to be excluded from BICS, to avoid double exemption. EII would be your route.
How do I know which scheme to apply for?
Check EII eligibility first, since it is deeper and available now. If you do not meet the stricter EII thresholds, assess BICS, which has lower thresholds and a 2026 eligibility window. For multi-site businesses, the position should be checked site by site.
When do I need to act?
EII can be applied for now. For BICS, the first-year eligibility window runs from 1 October to 30 November 2026 (closing at 11:59pm on 30 November), with eligibility decisions confirmed in January 2027, and six consecutive months of electricity consumption evidence is needed to support an application - so preparation should begin well before the window opens.


