UK organisations are set to face a significant transition in electricity charging that will take effect from April 2026. The TNUoS charges transmission-network charge will significantly increase and businesses will see their standing charges rise – even if the business remains at the same level of consumption. This change will form a major part of UK transmission charges and will directly influence Business energy costs UK as well as overall Business electricity bills UK and wider UK electricity costs 2026.
One reason for this increase is associated with investment in the grid itself. Ofgem recently took the step to approve early-stage funding for several pieces of major transmission upgrades in England and Scotland, to allow for future growth in clean power.
For businesses, this is more than just a technical detail; it’s a cost matter. Taking time to understand What TNUoS charges are in the UK, and acting now will help avoid an inconvenient surprise during peak seasons and enable you to keep more control over energy charges.
Business customers pay TNUoS charges for the usage of the National Transmission System, which is the high voltage backbone of the electricity system, transferring electricity from generators to the local distribution systems. TNUoS charges pay for the infrastructure that keeps the country supplied with electricity and form a key part of both DUoS and TNUoS charges.
TNUoS charges are set by National Grid ESO and will only apply to Half-Hourly (HH) MPANs, which means that businesses will have smart, interval-based metering. This cost for most commercial users will be rolled into their standing charges or will be passed on separately under individual contract terms.
TNUoS charges are also location-specific. Those further away from generating sites will have to pay more for the delivery of electricity as the system has to transport the electricity across longer distances.
Starting in April 2026, TNUoS charges are expected to almost double, with the TNUoS Demand Residual— the biggest element of TNUoS charges—anticipated to rise by approximately 94% – which will total £7.5 billion in 2026/27. This steep rise contributes heavily to UK electricity costs 2026 and broader Business energy costs UK.
To illustrate, households might see standing charges increasing from approximately £51 to £93 per year. For businesses that consume much more and generally have half-hourly metering, the increases will be larger and more significant financially.
This increase is not something temporary. Rather, it reflects long-term structural changes to supply and demand in energy generation, as well as the investment that is required to facilitate the transition to a low-carbon economy in the UK.
The increase in transmission charges is a consequence of a combination of interacting factors. Understanding these is important for a business to contextualise its bills and connect them to rising Business electricity bills UK.
The UK is making a rapid switch to renewable energy, particularly onshore and offshore wind. Many of the renewable sites are in rural and remote areas, particularly in Scotland and the North Sea, and away from existing demand hubs.
As a result, expensive new transmission lines, subsea cables, and reinforcement of existing transmission systems will need to be developed. These will be large scale, costly and are critical to meeting national decarbonisation targets.
The increasing uptake of electric vehicles, heat pumps and electric heating systems is increasing pressure on the national grid.
As the transition towards electrification accelerates, the system will need to be upgraded and increased to operate at higher loads safely and reliably. More capacity equates to more investment in infrastructure – and to more TNUoS charges.
It may seem counterintuitive, but overall electricity demand has dropped in recent years because of increased efficiencies and the changing nature of industrial activity.
Since transmission costs are almost entirely fixed, these costs are simply being shared over fewer units of electricity, imposing a higher cost per unit on all users.
Some of the UK’s transmission network is several decades old. The National Grid is currently undertaking several major upgrades, including replacing old technology with digital technology.
These improvements are critical for improving grid stability – growing variable renewable energy on the grid, and developing the network for future technologies.
Businesses should prepare for increased standing charges beginning in 2026. Your regular monthly standing charges could go up even if your consumption is unchanged. This will strongly influence Business energy costs UK.
Heavy load sectors like manufacturing, data centres, cold storage, logistics hubs, and supermarkets will feel the impact most acutely. These sectors use a large quantity of electricity and rely on a constant and predictable supply, and largely operate on HH meters.
Multi-site businesses could see different impacts in the different districts or regions, as TNUoS varies by location. For further away from the generation centres, we are likely to see an even bigger shift in charges.
In addition, it is important to remember that all suppliers are obligated to pass TNUoS through in their charges. Businesses should not expect to escape them by moving to another supplier, although they can optimise other parts of their contract to mitigate.
It is still worth keeping on top of developments in TNUoS.
While the TNUoS charge increase cannot be avoided, there are several practical actions businesses can take to minimise their overall impact on energy bills.
Different contract types specifically treat network charges differently.
Fixed contracts include TNUoS in the price, but future increases may also be included in the rate, as there is generally a risk premium.
Pass-through contracts list TNUoS as a separate charge, but may provide greater transparency.
The contract structure can ultimately have a relatively important long-term price impact.
For certain types of businesses, there is an opportunity to shift energy-intensive loads off-peak periods and lower exposure to some network charges.
This may have more relevance (or opportunities) to industrial users that are operating flexible processes or machinery.
While TNUoS is not totally consumption-based, lowering electricity usage overall can lower some network charges and the impact of cost rises.
Smart lighting, motor controls, optimising HVACs, and building energy management systems provide tangible savings.
Many companies continue to pay for more capacity (kVA) than they are ever paying.
By reviewing your Maximum Import Capacity, you may be able to eliminate unnecessary charges—this is especially salient as standing charges go up.
If you have multiple sites, creating alignment around renewals and consolidating contracts may allow for better pricing and leverage with the supplier.
If your transmission fees go up, this is a way to offset it by achieving more favorable terms in another part of a long contract.
TNUoS misbilling occurs more often than most companies realise, even with suppliers that manage lots of HH data feeds.
A regular audit ensures you are being billed accurately and identifies billing errors you can get them to credit you back.
With major upheaval in the market on the horizon, businesses need a partner that can traverse the commercial and technical aspects of UK energy. E for Energy will review the associated HH consumption data, review the supplier structure, forecast the impact of TNUoS changes on future bills, and find opportunities for savings. Our team negotiates the best rates available, and ensures there are no hidden pass-through costs buried in your contract.
We will also support your business ongoing by completing regular bill audits, market monitoring, and providing guidance for navigating future network reform between the years 2026 to 2030.
Our aim is simple: to ensure your business pays the lowest possible cost per kWh and has complete clarity, control, and stability over the long term.
The significant rise in TNUoS charges arriving in 2026 will transform electricity costs for UK businesses, particularly those on HH meters. While no company can avoid the increase itself, they can take genuine action to reduce their overall energy spend and hedge the uncertainty.
Getting an early understanding, and having a plan will allow organisations to be prepared and not reactive. If you want reassurance and clarity as to how these cost changes will affect your specific sites, E for Energy can provide an assessment, at no cost to you, with no obligation to use it.