adm Signal Issue 03: Budget week, BICS and the smart meter rule

Welcome to Issue 03 of adm Signal.

Sixty seconds. What's moving on energy and the cost of running a site over the next fortnight, without the sales pitch.

1. Budget on Wednesday 28th October: listen for the detail, not the headline

The Chancellor delivers the Autumn Budget this Wednesday. When the government confirmed the British Industrial Competitiveness Scheme (BICS) in April, it said full detail of how the scheme is funded would be set out in Budget 2026. So that's one thing to listen for. The others: any change to the levies on business electricity bills, who would qualify, and when it would start. A measure that starts in 2028 won't help this winter.

Until something is announced, plan as if nothing changes on energy.

Find out more: What to listen for in the Budget

2. BICS: five weeks left for manufacturers to apply

BICS exempts eligible manufacturers from the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market on their electricity. The government puts that at around £35 to £40 per MWh, and says bills will be cut by up to 25%.

Applications close at 11:59pm on 30th November 2026. Each site needs at least 33 MWh a year of grid electricity, an eligible SIC code on Companies House and an eligible product. You'll also need six consecutive months of electricity bills and your MPANs. You can't amend an application once it's submitted, so don't leave it to the last week. Exemptions start in April 2027 (Capacity Market from October 2027).

Find out more: Our plain-English BICS guide · GOV.UK guidance for applicants

3. 0% VAT on some electricity this winter: check your bill

From 1st October 2026 to 31st March 2027, electricity that already qualified for the 5% reduced VAT rate in Great Britain is charged at 0%. For businesses, that usually means small sites using no more than an average of 33 kWh a day (1,000 kWh a month), and charities' non-business use. If you pay standard-rate VAT on a normal business tariff, nothing changes.

If you think you qualify, check that your October bill shows 0%.

Find out more: HMRC: VAT on fuel and power

4. Renewing from September 2027? You'll need a smart meter

From 1st September 2027, any new fixed-term energy contract for a small or medium business site must include a term saying you have, or agree to have, a smart or advanced meter. Suppliers start writing to customers about it from 1st January 2027. If you rent, you may need your landlord's agreement, so start that conversation early rather than in the week you want to fix a price.

Find out more: Our guide to the smart meter rule

5. Big connection, low usage? Ofgem wants to hear from you by 11th December

On 16th October Ofgem said it is minded to reject DCP 412, a proposal to cut the fixed network charges for sites that have a big electricity connection but use little power across the year. Ofgem particularly wants evidence from affected businesses. If your standing charges feel out of all proportion to what you use, this is your chance to say so.

Find out more: What it means for "peaky" sites · Ofgem consultation

Key dates

📅 28th October 2026: Autumn Budget 📅 30th November 2026, 11:59pm: BICS applications close 📅 11th December 2026: Ofgem DCP 412 consultation closes 📅 1st January 2027: suppliers start writing to business customers about the smart meter rule 📅 31st March 2027: temporary 0% VAT on qualifying electricity ends 📅 1st September 2027: smart or advanced meter needed for new fixed-term business contracts

See more dates →

What to do this fortnight

If you're a manufacturer, run the BICS eligibility check and pull six months of electricity bills together before Budget week is out.

If you'd like a second pair of eyes on BICS, your meters or your contract dates, message me. Numbers and options, no hard sell.

Adam