Business electricity for manufacturing and industrial

A mid-sized food manufacturer we work with operates 24/7 across three production lines. Their electricity bill ran to seven figures annually, half-hourly settled, with capacity charges, reactive power adjustments and a flex contract that nobody on the finance team fully understood. The first useful piece of work was just translating the bill into plain English so the FD could see what was paying for what.

Manufacturing electricity is a different conversation from any standard SME. Process motors, compressed air systems, refrigeration, lighting, HVAC. Each line has its own profile. Most sites are half-hourly settled with KVA capacity charges. Many qualify for Climate Change Agreements with associated CCL discount. Contract types are rarely simple fixed terms.

This page covers how we help UK manufacturers review their electricity contracts. The mechanics of switching are in our business electricity switching guide. Our business electricity service covers the open UK market across every commercial sector.

How we help manufacturing operators

We start by translating the bill. For half-hourly settled sites the invoice contains a lot of moving parts: unit rates by time of day, DUoS (Distribution Use of System) charges, TUoS (Transmission Use of System) charges, capacity charges, reactive power, Climate Change Levy, and possibly a contract management fee.

From there we look at whether the contract type (fixed, flex, pass-through, basket-tracking) suits the operation, whether the available capacity matches actual peak demand, and whether CCA registration is in place where the sector qualifies.

Why manufacturing electricity bills are different

Half-hourly settlement and capacity charges

For manufacturing sites the agreed import capacity (KVA) is a fixed monthly charge regardless of consumption. Capacity set higher than actual peak demand costs every month. Capacity set lower than peak demand triggers excess charges. Reviewing the historical demand profile against the agreed capacity is one of the easier wins on a manufacturing electricity review.

Climate Change Agreements and CCL discount

Energy-intensive sectors qualify for Climate Change Agreements (CCAs) administered via trade associations. CCA participants get a discount on Climate Change Levy in exchange for meeting agreed energy efficiency targets. We don’t manage CCAs but we’ll flag where your sector qualifies and the discount isn’t being applied on the bill.

Contract type: fixed, flex or pass-through

For manufacturers, the right contract type depends on operational risk appetite. Fixed-term contracts give predictability but you pay for the supplier’s risk margin. Flex contracts let you hedge purchase volumes across the wholesale market. Lower margin but requires active management. Pass-through contracts separate energy cost from non-energy charges, giving more visibility on the breakdown.

How a manufacturing electricity review works