Business Energy Changes in 2027: Key Deadlines and Legislation

With 2027 just around the corner, many businesses are already setting budgets and planning for the year ahead. Alongside everything else on your to-do list, it’s worth taking some time to look at energy, as several changes next year will affect what you pay, how your usage is measured and what you need to report.

Some of these changes apply to every business with an electricity or gas supply, while others only affect larger organisations or energy-intensive industries. To help you plan with confidence, we’ve set out each change in date order, explained who it affects and outlined what you can do now.

Important for manufacturers: The first application window for the British Industrial Competitiveness Scheme (BICS) closes at 23:59 on 30 November 2026. Eligible businesses that miss this deadline could lose access to the 2026/27 back payment and the April 2027 start. We’ve explained the scheme and its eligibility criteria below.

Business Energy Changes in 2027: Key Dates at a Glance

Date	Change or deadline
30 November 2026	First BICS application window closes
31 March 2027	EV chargepoint tax relief ends for Corporation Tax
1 April 2027	TNUoS and BSUoS charges increase
1 April 2027	Climate Change Levy rates rise
April 2027	British Industrial Competitiveness Scheme begins
1 May 2027	CCA Target Period 7 reporting deadline
7 May 2027	MHHS meter migration deadline
1 September 2027	New smart meter rules for fixed contracts
5 December 2027	ESOS Phase 4 compliance deadline

Tax Relief on EV Chargepoints Ends: 31 March 2027

Businesses can currently claim a 100% first-year allowance on zero-emission cars and electric vehicle (EV) chargepoints, which means you can deduct the full cost from your taxable profits in the year you buy them. This allowance is due to end on 31 March 2027 for Corporation Tax and 5 April 2027 for Income Tax.

If you’ve been thinking about installing chargepoints for staff, visitors or a fleet, completing the work before the end of March 2027 could help reduce the overall cost. Eligible chargepoints may also qualify for 100% business rates relief for 10 years, which was introduced in the 2025 Budget.

TNUoS Charges Increase Again: 1 April 2027

Transmission Network Use of System (TNUoS) charges, which pay for the maintenance and upgrade of the National Grid’s high-voltage transmission network, are set to rise again from 1 April 2027.

This follows an average increase of more than 60% in April 2026. The National Energy System Operator (NESO) currently expects the fixed TNUoS charges most businesses pay to rise by around a further 27%, with the final figures due to be published in January 2027. You can find further details in NESO’s latest TNUoS forecasts.

TNUoS is factored into your standing charge, so you’ll pay it however much electricity you use. When reviewing your business energy contract, check whether your supplier has fixed TNUoS for the length of the agreement or treats it as ‘pass-through’, meaning it can increase.

We can also carry out a kVA analysis to check you’re paying for the right amount of Available Supply Capacity (ASC), as being placed in a lower band could reduce how much TNUoS you pay.

BSUoS Charges Increase: 1 April 2027

Balancing Services Use of System (BSUoS) charges cover the cost of keeping supply and demand on the grid in balance, and these are also set to increase significantly from April.

NESO’s draft figures put BSUoS at £21.67/MWh from April to September 2027 and £18.42/MWh from October 2027 to March 2028, compared with £12.49/MWh today. This is mainly because higher wholesale gas prices pushed up the cost of balancing the grid in 2026, leaving NESO with around £1.1bn to recover. Final figures are expected in December.

While the cost of the Renewables Obligation, which supports older renewable generators, is expected to fall slightly from April 2027, Capacity Market charges are likely to stay high. Taken together, most businesses should still expect their non-commodity costs (the charges on your bill that aren’t for the energy itself) to rise next year, so it’s worth checking which charges in your contract are fixed and which can change.

Climate Change Levy Rates Rise: 1 April 2027

The main rate of the Climate Change Levy (CCL) will rise in line with inflation from 1 April 2027, going from 0.801p/kWh to 0.827p/kWh for both electricity and gas.

There is some better news for electricity users further ahead, as the October 2026 Budget confirmed that the main CCL rate on electricity will be frozen from April 2028. The gas rate will rise again at that point, to 0.851p/kWh. If your business holds a Climate Change Agreement, you’ll continue to pay a reduced rate.

British Industrial Competitiveness Scheme Begins: April 2027

The British Industrial Competitiveness Scheme (BICS) will reduce electricity costs for around 10,000 eligible manufacturers in Great Britain. Businesses that qualify won’t pay the costs of the RO and Feed-in Tariffs on their bills from April 2027, or Capacity Market charges from October 2027. The Government estimates this is worth around £35 to £40/MWh, and the October 2026 Budget also confirmed a back payment for 2026/27.

To qualify, a business must be registered at Companies House, manufacture eligible products at a site in Great Britain, operate in an eligible sector and use at least 33 MWh of grid electricity a year at that site.

The first application window closes at 23:59 on 30 November 2026. Missing this means losing the back payment and the April 2027 start.

BICS sits alongside the existing support for Energy Intensive Industries, including the Network Charging Compensation (NCC) Scheme, which still requires quarterly applications through Elexon.

CCA Target Period 7 Reporting: 1 May 2027

The first target period of the new Climate Change Agreement (CCA) scheme, known as Target Period 7, ran throughout 2026. If you hold an agreement, you’ll need to report your performance by 1 May 2027, in line with the CCA reporting requirements.

If a site has missed its target, a buy-out fee will usually be due by 1 July 2027. It’s important to stay on top of this, as keeping your reduced CCL rate from 1 July 2027 depends on meeting your obligations. The next target period runs from 1 January 2027 to 31 December 2028, and new applicants can join between 1 January and 31 August 2027 through their sector association.

MHHS Meter Migration Deadline: 7 May 2027

The rollout of Market-Wide Half-Hourly Settlement (MHHS) reaches its final stages in 2027. Energy suppliers must move all electricity meters onto half-hourly settlement by 7 May 2027, and Elexon will then switch to a faster half-hourly settlement process on 2 July 2027.

If your meter can’t record half-hourly data, your supplier will arrange an upgrade. If you’d prefer to choose your own meter, or you need a Meter Operator Agent (MOA) contract in place for a dedicated half-hourly meter, get in touch and our team can help you arrange it.

New Smart Meter Rules for Fixed Contracts: 1 September 2027

From 1 September 2027, small businesses and public sector sites in Great Britain will need to have, or agree to have, a smart or advanced meter installed before they can sign a new fixed-term energy contract.

In the run-up to this date, your supplier must contact you at least once between 1 January and 1 September 2027 to explain what’s changing. If you receive one of these letters, it’s worth checking what type of meter is installed at each of your sites, so there are no delays when it’s time to renew.

This only applies to contracts agreed on or after this date, so your current contract won’t be affected until you next renew. Without a fixed contract, you’d usually be moved onto an out-of-contract rate, which is almost always more expensive. To protect customers, suppliers will need to arrange installations within set timescales and make sure you aren’t penalised for delays outside your control.

ESOS Phase 4 Compliance Deadline: 5 December 2027

If your organisation met either of the following conditions on 31 December 2026, you qualify for ESOS Phase 4: it employs 250 or more people, or it has an annual turnover above £44 million and a balance sheet total above £38 million. You’ll need to complete your assessment and notify the Environment Agency by 5 December 2027.

Following changes made in 2026, Phase 4 reports also need to include the energy savings you’ve achieved and explain why any measures from your previous action plan weren’t carried out. Your Phase 4 action plan will then be due by 5 December 2028.

Your 12-month reference period must include 31 December 2026, so the energy data you’re collecting now could form part of your assessment. ESOS Lead Assessors tend to get busy as the deadline approaches, so we’d recommend starting early in 2027.

Not Sure Which Changes Will Affect Your Business? Get in Touch

The energy market is constantly evolving, and keeping track of every new charge, scheme and deadline alongside running a business isn’t easy. In 2027, some of these changes will affect almost every business, while others will only apply to larger organisations or manufacturers.

If you’re not sure where you stand, we’re here to help. Our expert team can review your contracts to see which non-commodity charges are fixed or pass-through, check your supply capacity, help you prepare for ESOS and CCA reporting, and make sure you understand the new smart meter requirements before your next renewal.

That means fewer surprises, more accurate budgets and more time to focus on running your business.

Get in touch today, and let’s get you ready for everything 2027 has in store.