BICS and EII energy relief: Cut your electricity costs with government relief
Manufacturers and energy intensive businesses can be exempt from some of the policy costs built into their electricity bills, and innovation spending can earn tax relief. We check eligibility and our specialist partners handle the application.
New for manufacturers
British Industrial Competitiveness Scheme (BICS)
What it is
A new government scheme that exempts eligible manufacturers from the costs of the Renewables Obligation, Feed-in Tariffs and Capacity Market that are normally built into electricity bills.
Potential benefit
Government estimates suggest savings of up to around 25% on electricity bills (roughly £35 to £40 per MWh), with over 10,000 manufacturers expected to be eligible, including SMEs.
Timeline
- 1
1st October 2026
Applications open.
- 2
30th November 2026
Window closes at 11:59pm.
- 3
January 2027
Eligibility decisions.
- 4
April 2027
Relief begins (Renewables Obligation and Feed-in Tariffs), with Capacity Market relief from October 2027.
Approved exemptions last 5 years.
Is it worth a look?
- You're a manufacturer registered with Companies House.
- You operate in an eligible manufacturing sector and make an eligible product (defined by SIC and HS codes, covering areas such as automotive, aerospace, pharmaceuticals, chemicals, metals, food and drink and other manufacturing).
- Each site uses at least 33 MWh of grid electricity a year.
- Most of that electricity is used for eligible manufacturing (relief is 100% where 50% or more is used for eligible manufacturing and 50% where it's between 25% and 50%).
What you'll need
- Company registration number
- Site details and meter numbers (MPANs)
- Six consecutive months of recent electricity bills
- Evidence of the products you make
Important: late applications won't be considered for the first round, so don't leave it until November.
The long-term route
Energy Intensive Industries (EII) support
What it is
Support for the most electricity-intensive businesses, whose competitiveness is hit hardest by energy costs.
Who it's for
Businesses in eligible sectors where electricity is a large share of the business's costs relative to its output (typically electricity costs around 20% or more of gross value added), such as steel, chemicals, paper, glass, ceramics, cement and similar processes.
What it can include
- Up to 100% exemption from the costs of Contracts for Difference, the Renewables Obligation and Feed-in Tariffs
- Exemption from Capacity Market costs
- Compensation of up to 90% of certain electricity network charges (from April 2026)
- For some sectors, compensation for indirect carbon costs
How it works
You apply for an EII certificate, which is then used to claim the exemptions and compensation. Eligibility is reviewed periodically, so support isn't automatic.
The same electricity can't be relieved under both BICS and EII, so it's worth checking which route fits your sites best, and we can help with that.
The energy link
R&D tax relief
What it is
A tax relief for companies that spend money resolving scientific or technological uncertainty, which can include developing new or improved processes, products or systems.
Why it links with energy
Projects such as developing new, more energy-efficient manufacturing processes, integrating on-site generation, storage or heat recovery in new ways, or building bespoke monitoring and control systems may qualify.
Potential benefit
Under the current scheme, relief can be worth around 15% to 27% of qualifying spend, depending on company size and circumstances, as a reduction in tax or a cash credit. Qualifying costs can include staff, subcontractors, software, consumables and some data and cloud costs.
Key point
If you're claiming for the first time (or haven't claimed in the last three years), you may need to notify HMRC within six months of your accounting year end, so talk to us early.
Quick check
Could you qualify?
BICS
You might qualify if...
- You're a UK manufacturer registered with Companies House
- Each site uses at least 33 MWh of grid electricity a year
- Most of that electricity goes into making eligible products
EII
You might qualify if...
- You work in an electricity-intensive sector such as steel, chemicals, paper, glass or ceramics
- Electricity is a large share of your costs relative to output
- Energy costs directly affect how competitive you are
R&D tax relief
You might qualify if...
- You're developing new or improved processes, products or systems
- The work involves solving a scientific or technological uncertainty
- You spend on staff, subcontractors, software or consumables for it
Check your eligibility
BICS applications close 30th November 2026.
This is general information based on published government guidance and may change. Eligibility and the value of any relief depend on your circumstances and are decided by the relevant government body or HMRC. This is not tax or legal advice.
How we help
Three simple steps
- 1
Quick chat and eligibility check
Free and no obligation.
- 2
We prepare your application
We gather your bills and site details and our specialist partners prepare the application or claim.
- 3
You get the relief
And we keep you on track with annual declarations and reviews.