With 2027 approaching, there are some important changes coming to business energy. From rising electricity charges to new smart meter rules, these updates could affect how much your business pays and how you manage your energy.
Some will affect businesses of all sizes, while others are more relevant to manufacturers or larger organisations.
We’ve broken down the key changes, what they mean and what you can do to prepare.
1. Electricity bills could be going up
From April 2027, several charges that make up your business energy bill are expected to increase.
These include the costs of maintaining the electricity network (TNUoS), balancing electricity supply and demand (BSUoS), and the Climate Change Levy (CCL).
You don’t need to know every technical detail, but you do need to understand how these increases could affect your costs.
What does this mean for your business?
Even if you’re on a fixed energy contract, some charges may still change depending on your agreement.
Our advice: Check whether your contract includes fixed or variable third-party charges. Understanding this now could help you avoid unexpected increases.
2. The way your electricity is measured is changing
Smart meters and more accurate energy readings are becoming increasingly important.
By May 2027, electricity suppliers are scheduled to complete the move to a system that uses half-hourly consumption data to calculate their energy settlement costs.
This is known as Market-Wide Half-Hourly Settlement (MHHS).
From September 2027, certain smaller businesses will also need to have, or agree to install, a smart or advanced meter before entering a new fixed-term energy contract.
What does this mean for your business?
More accurate energy data could help you understand when you’re using the most electricity and identify opportunities to reduce waste.
If you’re renewing your contract, your meter arrangements may also need reviewing.
Our advice: Check what type of meter you have, particularly if your contract is coming up for renewal.
3. Some manufacturers could benefit from lower energy costs
Not every change in 2027 means higher bills.
The British Industrial Competitiveness Scheme (BICS) is being introduced to help eligible manufacturers reduce their electricity costs.
Qualifying businesses could benefit from reductions in certain electricity charges from April 2027, with further support following in October.
Importantly, the scheme isn’t exclusively for large businesses. Smaller manufacturers may also qualify.
What does this mean for your business?
If you operate in manufacturing, you could be eligible for meaningful savings.
However, the first application window closes on 30 November 2026, so time is limited.
Our advice: Check your eligibility as soon as possible to avoid missing out on potential support.
4. Larger businesses have some important deadlines
If you manage energy for a larger organisation, 2027 brings several reporting responsibilities to keep on your radar.
Two important ones are:
- Climate Change Agreements (CCA): Businesses participating in the scheme have a reporting deadline of 1 May 2027.
- Energy Savings Opportunity Scheme (ESOS): Qualifying large organisations must complete their Phase 4 compliance requirements by 5 December 2027.
These schemes help encourage energy efficiency and, in some cases, provide financial benefits.
What does this mean for your business?
Missing deadlines could create compliance problems or affect access to certain benefits.
Our advice: Review your reporting obligations early and make sure the right information is being collected.
5. Planning to install EV charging points?
If you’re considering electric vehicle charging facilities at your premises, there’s another date worth knowing.
The dedicated 100% first-year tax allowance for eligible EV chargepoints is currently due to end on 31 March 2027 for Corporation Tax purposes, and 5 April 2027 for Income Tax.
What does this mean for your business?
The timing of a planned installation could affect the tax relief available.
Our advice: If EV charging is already part of your plans, speak to your accountant about the available allowances before committing.
What should your business do now?
You don’t need to understand every energy regulation to prepare for 2027.
A few simple checks could make a difference:
- Review your energy contract and understand which charges could change.
- Check your meter arrangements, especially if you’re approaching renewal.
- Find out whether your business qualifies for manufacturing support.
- Make a note of any reporting deadlines that apply to your organisation.
- Review planned energy investments and their timing.
We’re here to help you prepare
With energy costs and regulations constantly changing, knowing what to expect can make planning easier.
Whether you’re running a small business or managing energy across multiple sites, understanding your contracts and upcoming changes is an important first step.
Not sure how the 2027 changes could affect your business?
Get in touch with our team. We can help you review your energy arrangements, understand your options and prepare for the year ahead.
