British Industrial Competitiveness Scheme (BICS) – what lighting businesses need to know
Based on the final eligibility criteria, most lighting manufacturers and all lighting importers will not qualify for BICS.
Eligibility requires both:
- Operating in a sector listed in Annex A (defined by SIC4 code), and
- Manufacturing eligible products listed in Annex A (defined by HS6 codes).
The core lighting manufacturing SIC code (2740 – Manufacture of electric lighting equipment) is not included in the list of eligible sectors. In addition, most lighting products (luminaires, fittings and lamps under Chapter 94 HS codes) are not included in the list of eligible manufactured products.
A very small number of businesses may be eligible where they:
- Are registered under an eligible SIC (e.g. glass manufacturing or electronic component manufacture), and
- Manufacture specific eligible components such as LED semiconductor devices or glass lamp envelopes.
Importing, branding, assembly or distribution activities do not meet the scheme’s manufacturing requirement.
The LIA will continue to:
- Monitor implementation guidance as it is published during 2026;
- Engage with DBT on cumulative energy cost issues affecting the lighting sector; and
- Represent the industry’s position in future reviews, including the planned 2030 BICS review.
Members uncertain about their SIC or HS position are encouraged to review their Companies House SIC registration and the final Annex A lists.
Wider context
As a member of the British Energy Efficiency Federation (BEEF), The LIA also wanted to draw members’ attention to a recent article by Andrew Warren, Chair of BEEF, published in the April edition of Energy in Buildings & Industry.
The article provides useful wider context for the current BICS discussion, drawing on new OECD firm‑level analysis which highlights the very large gap in energy productivity between firms operating in the same industrial sectors. It usefully illustrates that while schemes such as BICS may help alleviate energy cost pressures for some businesses, long‑term competitiveness and resilience are just as dependent on improving how effectively energy is used, and on the wider diffusion of best practice across industry.
Other manufacturing bodies have also commented on the BICS announcement. For example, Make UK has welcomed the Government’s recognition of high UK industrial energy costs, while highlighting that many manufacturers are currently facing significant and immediate cost pressures as energy contracts are renegotiated, and that relief from 2027 may come too late for some businesses.
This reinforces the importance of viewing BICS as part of a broader and more immediate industrial energy policy challenge, rather than a complete solution in itself.
Ayca Donaghy, CEO of The LIA commented
While BICS is a significant intervention for energy‑intensive manufacturing, the final design confirms that lighting manufacturing is largely outside scope. This reinforces the importance of continued engagement on broader electricity cost reform and competitiveness measures for our sector, including how effectively energy is used in practice, not just how it is priced.
Relevant links to BICS can be found below:
