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BICS

How many MWh per year do you need to qualify for BICS?

Applicants for BICS must have a minimum annual grid electricity usage of 33 MWh. Find out what this means for your eligibility.

Millie Palmer

To qualify for the British Industrial Competitiveness Scheme (BICS), a site needs to use at least 33 MWh of grid electricity a year. That's 33,000 kWh, which is the unit on most electricity bills. It's a low bar, but it has to be evidenced in a specific way, so it's worth knowing how the test works before you start.

What is the BICS electricity threshold?

The minimum is 33 MWh (33,000 kWh) of grid-supplied electricity per year at the manufacturing site you're claiming for. A megawatt hour is 1,000 kilowatt hours, so divide the figure on your bill by 1,000 to convert.

The amount of relief you can claim is based on your energy usage on eligible manufacturing activity. However, to qualify, you just need the minimum 33 MWh of grid electricity.

The electricity threshold is only one of four requirements. You also need to be registered at Companies House, operate in an eligible sector, and manufacture an eligible product at the site. Our guides to SIC codes and HS codes cover the other two tests.

What counts as grid electricity?

Only electricity supplied through the grid is included. Electricity generated on site, from solar panels or combined heat and power for example, is outside the scheme and should be excluded from your figures. If your site generates some of its own power, use the grid import figure from your bill, not your total usage.

Your bills should show the supply address, MPAN, meter address, supplier, billing period, bill payer and the amount of grid electricity used.

How is it tested?

You don't need to supply a full year of bills. Instead, the scheme looks at the most recent six consecutive months for which your bills are available, within the last 12 months. Over that period, you need to have used more than 16.5 MWh (16,500 kWh) of grid-supplied electricity. Six months of use at that level is treated as the equivalent of the annual threshold.

Company A's site shows 2,900 kWh a month on average across its latest six bills. That's 17,400 kWh, which is above 16,500 kWh, so the site passes. Company B averages 2,600 kWh a month, which comes to 15,600 kWh over six months. That falls short of the test.

The test is applied per site, so a business with several sites should check each one before including it in an application.

What if you don't pay the supplier directly?

Many manufacturers rent space on an industrial estate, and their electricity is billed by a landlord. In that case, you'll need the bills you pay to the third party for the same six-month period.

Where the bills don't show how much grid electricity you used, an invoice from your landlord should confirm the amount and the MPANs it relates to. If you share a meter, you'll also need to evidence the total electricity used at the whole meter.

What if your use is close to the line?

First, you must use the right six months. The eligibility test is based on the most recent six consecutive months available, not the six you'd choose. A site with a busy winter and a quiet summer may look different depending on the months included. You might find you're not eligible this year due to the months you need to submit; bear this in mind for the next application window.

Key takeaways

  • The minimum to qualify is 33 MWh a year. That's 33,000 kWh.
  • The test uses six months. You need more than 16.5 MWh (16,500 kWh) across the most recent six consecutive months.
  • Only grid electricity counts. On-site generation is excluded.
  • It's tested per site. Check each site separately.

If your usage is comfortably above the line, this is one box you can tick quickly. If it's close, a careful look at your bills is worth the time. Speak to the Energy Relief Vault team if you'd like help checking your figures.