How Durham Manufacturers Could Reduce Electricity Bills by up to 25%

The government’s British Industrial Competitiveness Scheme (BICS) is designed to cut electricity bills by up to 25% for more than 10,000 qualifying UK manufacturers, with funding of up to £600 million per year. For an eligible site, that could mean savings of hundreds of thousands of pounds annually — in some cases considerably more.

The scheme formally takes effect in April 2027, but it includes a one-off backdated payment for the 2026–27 period, reflecting the support a business would have received if BICS had been in operation from April 2026. In practice, this means the preparation businesses undertake now could determine the value of a payment due in just under a year.

It is worth noting that BICS remains subject to final legislation, which the government expects to implement by Autumn 2026. The figures, thresholds and dates in this article reflect the scheme as currently published, but some details may be confirmed or adjusted as the legislation progresses, including in the upcoming Budget. We will update this guidance if anything changes.

The BICS Timeline: Key Dates for 2026 and 2027

The schedule below reflects the latest published government timeline. Most of the detailed evidence-gathering needs to take place within a relatively short window in the autumn, so the preparation steps in the next section are worth starting now rather than waiting for that window to open.

Summer 2026: the government’s official eligibility checker is expected to launch, allowing manufacturers to assess whether their operations fall within scope.

1 October to 30 November 2026: the formal evidence-gathering window opens, during which businesses provide the information DBT needs to assess eligibility. Preparing your evidence in advance will enable you to move quickly once the window opens.

By 8 January 2027: the Department for Business and Trade aims to confirm eligibility for all applicant businesses for Year 1 of the scheme.

April 2027: the scheme formally launches, with bill discounts taking effect and the backdated payment for the 2026–27 period issued alongside it.

Three Actions to Prepare Your Application Now

The application process will require detailed operational and financial evidence. Taking these three steps now should help avoid delays once the window opens in the autumn.

1. Check Your Standard Industrial Classification (SIC) Code

Your company must carry out at least one manufacturing activity listed in the government’s eligible sectors schedule. You can check your company’s currently registered SIC code using the GOV.UK: Get information about a company service.

2. Check the Latest Annex A Document

Review your codes against the most recent version of Annex A: Standard Industrial Classification (SIC) and Harmonised System (HS) codes eligible for BICS, published by the Department for Business and Trade on 16 April 2026. This version combines SIC codes with their corresponding Harmonised System (HS) product codes, replacing the SIC-only version first published on 24 November 2025. It is important to use the April 2026 version, as it reflects the full, current eligibility criteria.

Examples of pre-approved sectors relevant to local supply chains include SIC 2229 (other plastic products), 2599 (other fabricated metal products), 2920 (coachwork for motor vehicles), 2932 (automotive parts and accessories), and 3299 (other manufacturing not elsewhere classified). This is a small sample from a much longer list, so it is worth consulting the full document even if your code is not listed here.

3. Map Your Electricity Consumption

The discount available depends on the proportion of a site’s grid electricity used to manufacture eligible products, as defined by the HS code. A 100% discount — estimated at £35–£40 per MWh — applies to sites using 50% or more of their electricity for eligible products. A 50% discount applies to sites in the 25–50% range, and sites below 25% will not qualify for a discount. For guidance on identifying the right product codes, see Using Harmonised System (HS) or commodity codes on business.gov.uk.

Given the short evidence-gathering window in October and November, mapping electricity consumption to eligible HS codes is likely to be the most time-consuming of the three steps — and the one that is most worth starting early.

Need More Detailed Guidance?

For detailed technical guidance or sector-specific advice, contact your relevant trade association — such as the North East Automotive Alliance (NEAA), the Society of Motor Manufacturers and Traders (SMMT), or Make UK. Business Durham is also happy to discuss what BICS could mean for your site; get in touch with your Business Support Officer to discuss next steps.