Why preparation cannot wait until October

The temptation is to wait until the application window opens and deal with it then. The problem is that a BICS application is an evidence exercise, and evidence takes time to assemble: six consecutive months of consumption data, product and sector classifications confirmed, and electricity use apportioned between eligible and ineligible activity across each site.

Leave it to October and you are gathering six months of data you should already have been collecting, chasing classifications across departments, and working out your site-level electricity split against a deadline. Start now, and the window becomes a formality. The four steps below are the readiness process we recommend.

Step 1: Confirm your business and products qualify

Before anything else, establish whether you are in scope at all. Three checks:

• Review your Companies House information. Your registered details, including your SIC code, are the starting point the scheme works from.
• Check your SIC code against the qualifying sectors list. Confirm the code registered for your business appears on the scheme's list of eligible sectors. If your registered code does not accurately reflect what you manufacture, resolve that early - it can affect your eligibility.
• Identify the HS codes for your products. Map the goods you manufacture to their Harmonised System (HS6) product codes, and check them against the eligible product list. This links what you actually make to the qualifying activity.

The outcome of Step 1 is a clear view of whether - and where - you are likely to qualify, before you invest time in the detail.

Step 2: Gather your site energy information

BICS is assessed site by site, so the next step is to pull together the energy data for each manufacturing site:

• Compile the MPAN numbers for every manufacturing site. These identify each electricity supply point and are how the scheme ties relief to specific sites.
• Collect your electricity supply and contract information - who supplies each site, on what terms, and when contracts end. (As a commercial point, if a contract runs beyond April 2027, it is worth reviewing how it interacts with the relief you expect - though this is planning good practice rather than a scheme rule.)
• Confirm your annual grid electricity consumption for each site. Each manufacturing site must use at least 33 MWh of grid-supplied electricity a year to be in scope, and the six-month evidence period needs to show more than 16.5 MWh, which government uses as a proxy for the annual threshold. Note this is grid-supplied electricity - behind-the-meter solar, CHP and other on-site generation does not count, because those units do not incur the policy costs BICS exempts.

The outcome of Step 2 is a complete, site-by-site picture of your electricity supply - the foundation everything else is built on.

Step 3: Assess your manufacturing electricity usage

This is where the detail starts to determine value. For each qualifying site, you need to establish how much of its electricity is actually used for eligible manufacturing:

• Determine how much electricity is used for eligible manufacturing activities - the qualifying production processes themselves.
• Distinguish eligible activity from genuinely ineligible activity. This is more nuanced than "production good, everything else bad". Government allows the electricity used by supporting activities that directly support eligible manufacturing - which can include lighting, HVAC, IT and control systems, material handling, on-site logistics, testing, interim storage, R&D and even corporate offices - to count towards eligible use. Where a supporting activity is shared between eligible and ineligible production, a further apportionment applies. So the task is to separate eligible production and eligible supporting activity from genuinely ineligible use, rather than excluding all non-production areas outright.
• Establish which exemption band each site falls into. Where more than 25% but less than 50% of a site's electricity goes to eligible manufacturing, the site qualifies for a 50% exemption; where it is 50% or more, a 100% exemption; at 25% or less, the site does not qualify.

Because the bands are stepped, this assessment directly drives how much relief you receive. Government says sub-metering or monitoring should be used where available, but estimates are permitted where it is not - provided you supply the methodology and rationale behind them.

Step 4: Build your evidence trail

This is the step that most rewards starting early - not because BICS demands an accountancy exercise, but because the application stands or falls on being able to evidence eligible production and eligible electricity use clearly. Importantly, BICS does not require an EII-style financial test based on the proportion of turnover, GVA or economic activity that qualifying manufacturing represents. Mixed eligible and ineligible sites are handled principally through electricity pro-rating - total grid consumption versus the grid electricity attributable to eligible production and supporting activity.

What you are assembling is a clear, verifiable evidence trail. That typically means:

• Evidence of eligible production - six months of records showing you manufacture eligible products, tied to their HS6 codes.
• Electricity bills and consumption data for each site, covering the required six-month period.
• Your apportionment method - sub-metering or monitoring data where you have it; where you do not, a documented estimate (for example machine-level consumption or production-based calculations) with the rationale set out. Government explicitly allows well-reasoned estimates, and may ask for the underlying evidence later.
• Shared-meter and landlord evidence where a supply is shared, so the electricity attributable to your eligible activity can be isolated.

The guidance requires evidence to be accurate, complete and sufficient to verify eligibility - so it should be internally consistent and defensible if reviewed, but there is no blanket requirement that everything trace back to audited accounts. One thing worth stressing: applications cannot be amended once submitted, which is exactly why government recommends having the evidence ready in advance.

A readiness checklist

By the time applications open on 1 October 2026, you want to have:

• Confirmed SIC code and product HS codes, checked against the qualifying lists
• MPANs and supply/contract information compiled for every site
• Six consecutive months of clean, site-level grid electricity consumption data (each site over 33 MWh/year, evidenced by more than 16.5 MWh across the six months)
• A clear split of eligible vs ineligible electricity use per site - including eligible supporting activity - and the resulting exemption band
• An evidence trail: production records tied to HS codes, electricity bills, and a documented apportionment method (metered or a reasoned estimate)
• A view on whether BICS or the British Industry Supercharger is the better route

How eyebright helps you get ready

Preparation is where an independent consultancy earns its place. eyebright helps manufacturers work through all four steps:

• Steps 1-2 - confirming classification and codes, and compiling site-level supply and consumption data (made easier where we already hold your energy data through elexi).
• Step 3 - assessing how much of each site's electricity qualifies and which exemption band it falls into, using real metering rather than estimates.
• Step 4 - assembling the evidence trail: production records tied to HS codes, electricity data, and a defensible apportionment method (metered where possible, a documented estimate where not) that will stand up to review.

Because we are independent, we will also tell you honestly whether BICS is your best route or whether the British Industry Supercharger suits you better - before you commit time to an application.

Frequently asked questions

When should I start preparing for BICS?

Now. For the first year, the application window is 1 October to 30 November 2026 (closing at 11:59pm on 30 November), with eligibility decisions confirmed in January 2027 - but six consecutive months of electricity consumption evidence is needed to support an application, so the data-gathering period is effectively already open. Starting early turns the window into a formality rather than a scramble. Please note these dates apply to the first year of the scheme and, as the government consultation is ongoing, they could change - we monitor developments and update our guidance accordingly.

What information do I need for a BICS application?

You need your SIC and product HS codes, MPAN numbers and supply details for each site, six months of site-level grid electricity consumption data, a split of eligible versus ineligible electricity use, and evidence linking your production to eligible manufacturing and its HS codes.

What is the hardest part of a BICS application?

Evidencing eligible electricity use, site by site. Where a site does a mix of eligible and ineligible work, you need to apportion its electricity - via sub-metering where available, or a documented estimate where not - and show which supporting activities count. BICS does not require an EII-style turnover or GVA test; the focus is on eligible production and electricity, not company financials.

How is my exemption band decided?

By how much of a site's electricity is used for eligible manufacturing (including eligible supporting activity). More than 25% but less than 50% gives a 50% exemption; 50% or more gives a 100% exemption; at 25% or less the site does not qualify. Being able to evidence the split accurately is essential.

Do I need six months of data for BICS?

Yes. Government guidance requires six consecutive months of electricity consumption evidence for each site, from the most recent period available within the previous 12 months. Because the window opens in October 2026, businesses should already be capturing clean, site-level grid consumption data now.

Should I check other schemes as well as BICS?

Yes. Businesses eligible for the British Industry Supercharger cannot receive BICS for the same exemptions, and the Supercharger generally provides more support. Where a business qualifies for both, government recommends the Supercharger - so it is worth confirming the best route before committing to a BICS application.