Guidance

Annex C: British Industrial Competitiveness Scheme further guidance for landlords and other third parties

Updated 2 October 2026

Applies to England, Scotland and Wales

The British Industrial Competitiveness Scheme (BICS) helps eligible manufacturers reduce electricity costs by exempting them from certain electricity policy costs. 

Where electricity is supplied through a third party such as a landlord, managing agent or site operator, the exemption will be applied to that third party’s electricity bill. Third parties therefore play an important role in supporting applications and passing the benefit to eligible BICS manufacturers. 

This guidance has been prepared to help third parties understand what BICS exemptions are, what your role and responsibilities are and how the process works. 

1. The BICS exemption 

The BICS exemption consists of 2 elements: 

Ongoing electricity bill exemption:  

• applies for up to 5 years, subject to ongoing eligibility requirements and any scheme changes notified by the Department for Business, Innovation, Science and Trade (BIST)  
• recorded as a percentage of the relevant grid meter that is exempt from policy costs. From April 2027 manufacturers will be exempt from Renewables Obligations and Feed in Tariff costs and from October 2027 Capacity Market costs as well 
• for shared meters, the exemption applies only to the BICS eligible manufacturer’s share of electricity consumption 

One-off payment:

• eligible manufacturers will receive a one-off bill credit payment through their electricity bills in 2027. For those who pay electricity via a third party, this will be applied to the third party’s bill and we expect those savings to be passed on 
• further details will follow 

2. Roles and responsibilities 

Manufacturer (applicant):

• submits the BICS application and supporting evidence 
• engages with the third party to obtain required information 
• any disputes relating to BICS or pass-through of benefits must be resolved between the manufacturer and third party. BIST will not intervene 

Third party (for example, landlord, managing agent or site operator):

• provides the information needed to support the application
• passes the financial benefit of the exemption to successful applicants 

Department for Business, Innovation, Science and Trade:

• responsible for assessing and monitoring eligibility   

Electricity supplier:

• applies the approved exemption to the electricity bill 

3. Information required from third parties 

The application window will open on 1 October 2026 and close on 30 November 2026. The applicant will need to provide the following in its application: 

• evidence of the relationship between the third party (bill payer) and the applicant  
• evidence of the applicant’s electricity use at the site over a consecutive 6 month period within the last 12 months. Where this is not clear from existing applicant records, the third party may be asked to confirm the applicant’s electricity usage at the site in terms of a recharge invoice or billing statement
• confirmation of the total grid electricity consumption associated with the relevant MPAN(s) over the same consecutive 6 month period 
• confirmation of the name of the licenced electricity supplier 
• confirmation of the relevant MPAN number(s) or other meter identifier used by the applicant 
• confirmation of the electricity supply address, including the name of the site 
• confirmation that the relevant electricity levies are paid 

Electricity should relate to electricity for which policy levies apply, therefore electricity generated behind the meter (for example, solar generation) should be excluded from this.

Where multiple tenants are applying for BICS, it may be simpler to provide each applicant with bills covering the same 6-month period. 

4. If an application is successful  

Passing the financial benefit of the exemption to successful applicants 

Successful applicants will receive confirmation of their: 

• eligibility 
• business exemption level 
• final exemption percentage 

Applicants should share these details with the third party. Final exemption percentages will normally be confirmed in February and applied from April. 

The applicant and third party should agree how the benefit will be reflected through existing billing arrangements. 

5. Reporting responsibilities during the eligibility period

Applicants will have ongoing reporting obligations and may occasionally require updated electricity information from the third party. This will include an annual review and ad hoc changes in circumstances. This may mean that exemption levels could change.   

BIST may also invite third parties to participate in surveys to help improve the scheme.

Example 

A landlord has 2 tenants that successfully apply for BICS. 

	Manufacturer 1	Manufacturer 2
Share of meter consumption	40%	30%
Business exemption level	100%	50%
Exemption at meter level	40%	15%

Manufacturer 1 receives a full exemption because all eligible production activities qualify under the scheme. Manufacturer 2 receives a partial exemption because only part of its activities qualify. 

The total exemption applied at the meter is 55% (40% + 15%). As a result, 55% of the electricity supplied through that meter will be exempt from policy costs. 

The landlord must ensure that the financial benefit corresponding to this exemption is passed through to the eligible manufacturers. Other site users should not benefit from the exemption.