Manufacturers urged to check SIC codes for energy bill relief

The government’s forthcoming Energy Bill Discount Scheme (EBDS), which replaces the current Energy Bill Relief Scheme (EBRS) from 1 April, marks a significant drop-off in energy bill support for businesses.

After 31 March, many businesses will no longer qualify for any energy bill relief at all, and most of those that do will receive a maximum discount of just 2p/kWh and 0.7p/kWh for electricity and gas respectively. A more in-depth summary of the scheme is available here.

Some energy intensive businesses will qualify for a higher level of support if they qualify as an Energy and Trade Intensive Industry (ETII). Those that do will receive a higher discount (up to 8.9p/kWh and 4p/kWh respectively) on 70 per cent of their energy consumption, with the remaining 30 per cent covered by the lower rates of support.

As an indicative example, a medium-sized manufacturer using 1,600MWh of gas and 200MWh of electricity per month could receive up to £687,120 in energy bill discount across 2023/24. If they just took the lower rates of EBDS support, they would only receive a maximum of £15,074.

Businesses will have to actively apply to receive the additional level of support. Further details have not yet been released, but the application process is expected to be in place by the end of March.

A full list of qualifying ETII sectors is already available online. Crucially, businesses must have the right primary SIC code to qualify. Even if some of your activities fall under an eligible SIC code, your business will not be eligible if your primary SIC code registered with Companies House is not on the list.

Government guidance for those that believe their operations are not correctly classified will be published by the end of March.

If you believe you should qualify for the additional support on offer but do not have the correct registered SIC code, please contact our Manufacturing Team today.

SME manufacturers in Greater Manchester can also access expert advice to help reduce energy consumption, including:

• One-to-one advice from energy efficiency specialists through our Sustainability and Net Zero Service, who are experts in their field when it comes to identifying and implementing opportunities to cut energy waste from buildings and processes – often at low or not cost
• Our expert Manufacturing Service can also provide tailored one-to-one support to take costs out of your business through lean measures to improve your productivity and profitability

A set of introductory energy saving guides and recorded webinars are also available via our #HereForBusiness campaign.