In short
At manufacturing scale, the charges beyond the unit rate decide much of the bill: pass-through network and policy costs, agreed capacity, and reliefs such as Climate Change Agreements and the British Industrial Competitiveness Scheme. Eligible GB manufacturers can apply to BICS until 11:59pm on 30 November 2026.
- Compare quotes on what is fixed and what passes through, not on the unit rate alone.
- BICS can exempt eligible manufacturers from Renewables Obligation and Feed-in Tariff costs from April 2027, and Capacity Market costs from October 2027, subject to legislation.
- For food and drink producers, wastewater from production is charged as trade effluent on its volume and strength.
The problem
Manufacturing uses energy for process heat, ovens, compressed air, extraction and chilling, often across shifts. A food and drink producer runs cooking, chilling and washing; a bakery runs ovens from the early hours; a paint-spraying and finishing business runs spray booths, curing ovens, compressors and extraction. At this scale, two quotes with the same unit rate can produce very different bills, because so much of the cost sits elsewhere.
Comparing the wrong number
Network charges, policy costs and balancing costs can either be fixed in the price or passed through at cost. A quote with a low unit rate and everything passed through is not comparable with a fully fixed quote. Manufacturers often discover the difference only when non-energy costs rise mid-contract.
Capacity that does not match the plant
Agreed capacity on a half-hourly supply is paid every month, whether used or not, and it can set the band for fixed daily network charges. Production lines change; capacity rarely does.
Reliefs left unclaimed
Eligible sectors that sign a Climate Change Agreement and meet their targets pay a much reduced Climate Change Levy. The British Industrial Competitiveness Scheme opened on 1 October 2026 and closes at 11:59pm on 30 November 2026 for its first year. It can exempt eligible manufacturers from Renewables Obligation and Feed-in Tariff costs from April 2027, and Capacity Market costs from October 2027, subject to legislation. Eligibility depends on SIC and HS codes, and many manufacturers have not checked theirs.
Trade effluent
For food and drink producers, wastewater from production is charged separately from ordinary sewage, based on its volume and strength. It is often one of the least checked bills on a site.
The solution
1. Compare on total yearly cost
Lay every quote out on the same basis: what is fixed for the term, what passes through, and the expected total yearly cost.
2. Check capacity against the plant
Compare agreed capacity with real peak demand from half-hourly data, and adjust where it is far out.
3. Check every relief
Confirm whether your site falls under a Climate Change Agreement sector, and check your SIC and HS codes against the BICS lists before 30 November 2026.
4. Review trade effluent
Check how your wastewater is measured and charged, and whether you can choose your water retailer.
5. Match buying to your risk
Fixed, flexible or part-fixed: choose based on volume and how much price risk the business wants to carry.
Where we help
Where Business Savings Guru helps
Quotes compared like for like
Every supplier's quote laid out on the same basis: what is fixed, what passes through, and total yearly cost.
Capacity and charge bands
We check agreed capacity against the demand your site actually draws.
Reliefs checked
We point out where a Climate Change Agreement or BICS could apply, so you can check your eligibility before you renew.
Trade effluent bills
We check how your trade effluent is charged and compare water retailers where you can switch.
