True Group
If you’ve been researching ways to reduce industrial energy costs, you’ve probably come across a growing list of government support schemes.
BICS. EII. Climate Change Agreements (CCA).
Plenty of acronyms, but what do they actually mean for your business?
While all three schemes are designed to reduce energy costs for UK manufacturers, they work in very different ways. They target different charges, have different eligibility criteria and can deliver significantly different levels of savings.
Understanding the difference is the first step towards ensuring you’re claiming every discount your business is entitled to.
At a glance
| Scheme | Best for | Typical saving | Main benefit |
|---|---|---|---|
| BICS | A broad range of UK manufacturers | Around £40/MWh | Exemption from key electricity policy costs |
| EII | Highly energy-intensive manufacturers | Often 50%+ of electricity costs | The UK’s largest industrial electricity discount |
| Climate Change Agreements (CCA) | Eligible industrial businesses | Climate Change Levy savings plus potential retrospective claims | Reduced Climate Change Levy (CCL) |
Although all three schemes help reduce energy costs, they’re designed to solve different challenges.
BICS: Supporting more UK manufacturers
The British Industrial Competitiveness Scheme (BICS) is designed to make UK manufacturing more competitive by reducing electricity policy costs.
Unlike EII, which is aimed at the UK’s most energy-intensive businesses, BICS is expected to support a much wider range of manufacturers.
Eligible businesses are expected to receive exemptions from several electricity policy costs, including:
- Renewables Obligation (RO)
- Feed-in Tariff (FiT)
- Capacity Market charges
Together, these discounts are expected to be worth around £40/MWh, or approximately 4p/kWh.
With thousands more manufacturers expected to qualify, BICS represents a significant expansion of government support for industrial electricity users.
EII: The largest energy discount available
While BICS broadens access to support, Energy Intensive Industries (EII) remains the highest-value scheme available.
EII was introduced to protect businesses with exceptionally high electricity costs by reducing the impact of policy and network charges, helping UK manufacturers remain internationally competitive.
Eligible businesses can benefit from:
- 100% exemption from several government electricity levies
- 90% refund on eligible transmission and distribution network charges
- Exemptions from newer levies such as the Nuclear RAB charge and the EII Support Levy
Combined, these discounts can reduce more than 50% of a site’s delivered electricity costs, with annual savings that can reach seven figures for some manufacturers.
The trade-off is eligibility. Businesses must meet much stricter criteria, including demonstrating that electricity costs account for at least 20% of Gross Value Added (GVA), alongside sector-specific requirements.
Climate Change Agreements: A different type of support
Unlike BICS and EII, Climate Change Agreements (CCA) don’t focus on reducing multiple electricity charges.
Instead, they reduce the Climate Change Levy (CCL) for eligible businesses that commit to agreed energy efficiency or carbon reduction targets.
While the annual savings are generally lower than EII or BICS, businesses may also be able to reclaim up to four years of previously paid Climate Change Levy, providing a valuable one-off financial benefit alongside ongoing savings.
For many organisations, this represents an important part of a wider energy cost reduction strategy.
BICS vs EII vs CCA: What’s the biggest difference?
The biggest difference is what each scheme is trying to achieve.
- BICS extends energy support to a much broader range of manufacturers by reducing selected electricity policy costs.
- EII provides the largest discounts available but is reserved for the UK’s most energy-intensive businesses.
- Climate Change Agreements focus specifically on reducing Climate Change Levy costs through energy efficiency commitments.
Rather than competing with one another, the schemes complement different types of businesses and different elements of the energy bill.
Can businesses qualify for more than one scheme?
Potentially, yes.
Because each scheme targets different charges, some manufacturers may be eligible for more than one form of support.
- EII removes multiple policy costs and provides network charge discounts.
- BICS reduces specific electricity policy costs.
- Climate Change Agreements reduce Climate Change Levy.
Understanding which combination applies to your business can make a significant difference to overall energy costs.
Which scheme offers the biggest savings?
There’s no single answer.
For businesses that qualify, EII delivers the highest level of support and can reduce delivered electricity costs by more than half.
For manufacturers that don’t meet EII’s strict eligibility criteria, BICS could provide valuable savings by removing key policy costs.
Meanwhile, Climate Change Agreements offer targeted savings on Climate Change Levy and can also unlock retrospective claims.
The right scheme depends on your sector, energy consumption, manufacturing process and financial profile.
Why comparing the schemes matters
One of the biggest misconceptions is that businesses either qualify for support, or they don’t.
In reality, there are multiple schemes available, each designed for different types of manufacturers and each delivering value in different ways.
Businesses can overlook significant savings simply because they assume they aren’t eligible for government support.
Taking the time to understand the differences between BICS, EII and Climate Change Agreements is the first step towards identifying which opportunities are available to your business.
Looking beyond the acronyms
Government energy support is evolving, with new schemes like BICS expanding opportunities for UK manufacturers to reduce electricity costs.
But understanding where your business fits isn’t always straightforward.
At True Group, we help manufacturers navigate complex energy support schemes, assess eligibility and identify the opportunities that could deliver the greatest commercial value.
If you’re specifically exploring the British Industrial Competitiveness Scheme, we’ve created a dedicated guide covering how the scheme works, who it’s designed for and what it could mean for your business.
Want to know if you're eligible for BICS? Book a free consultation today.