Many UK businesses are now seeing electricity billing increases that aren’t driven by their per kWh unit price. The biggest pressure is coming from non-commodity costs — network and policy charges that sit in the standing-charge part of the bill and which are forecast to jump sharply from April 2026. This post explains what’s changing, why it matters for your business, and practical steps you can take now to try and mitigate future cost increases.
What’s changing—and why now?
TNUoS charges are set to rise higher than previously forecast.
The National Energy System Operator (NESO) has published a five-year view showing a sharp increase in Transmission Network Use of System (TNUoS) charges. These costs pay for the high-voltage infrastructure that moves electricity around the country. From 1st April 2026, the cost uplift will be significant—driven by grid reinforcement and system changes.
Specifically, NESO forecasts that the total TNUoS Fixed Residual standing charges will rise from £3.84 billion in 2025/26 to £7.52 billion in 2026/27—a 94% increase. By 2030/31, this figure could reach £11.75 billion, reflecting the cost of upgrading the grid to support low-carbon generation.
Besides TNUoS, non-commodity costs also include DUoS (local distribution network charges) and policy-scheme levies such as CfD, RO, FiT and the Capacity Market, which fund government initiatives to support renewable energy, low-carbon generation and security of supply. You can read more about these schemes in our guide to non-commodity costs.
Why Standing Charges Are Rising So Sharply
Several factors are converging:
- Supplier under-forecasting: Many suppliers underestimated non‑commodity costs during their internal forecasting. Now, they’re reconciling those costs, often via the standing charge line.
- System-wide uplifts: Changes in TNUoS levels and methodologies are flowing through to bills.
- Fixed-charge shift under Ofgem’s Targeted Charging Review (TCR): More transmission costs are now fixed per site per day, rather than variable by usage.
As a result, we have seen standing charges rise by more than £30 per day at some sites compared with previous levels — that’s over £10,950 a year for just one site!
What You Can Do Now
We strongly advise businesses to start budgeting now. While securing a long-term contract won’t necessarily prevent standing charge increases, there are still steps you can take to prepare for and potentially soften the impact of future uplifts.
At Black Sheep Utilities, we can help you review your contract structure and identify which non‑commodity items are fixed versus pass-through. If your agreement includes pass-through costs, we’ll work with suppliers to provide updated forecasts and assess the potential impact of April 2026 uplifts.
You may be able to explore securing a new contract ahead of the expected increases, particularly if your current agreement is due to renew soon, but any benefits will depend on the supplier, contract terms, and how non-commodity costs are treated. We’ll help you understand the options and decide whether a longer-term approach makes sense for your business.
If your business is energy-intensive, you may qualify for an Energy Intensive Industries (EII) exemption. This government scheme is designed to support sectors that use large amounts of electricity in their manufacturing processes, such as chemicals, metals, paper, and glass. Eligible businesses can receive significant reductions on certain policy-related charges. Black Sheep Utilities can help assess likely eligibility and work with your supplier to apply any exemptions, though final approval and exact savings are determined by the administering authority.
How Black Sheep Utilities Can Help
While we can’t guarantee that any action will reduce your standing charges or policy costs, we can help you understand your exposure and explore ways to potentially mitigate future increases:
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Free bill & contract review — we’ll guide you through your costs and highlight potential opportunities to manage them more effectively.
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Supplier & contract strategy — we compare supplier methodologies (not just headline rates) and advise on options that may help limit future standing charge uplifts.
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EII eligibility check — we’ll assess whether your business qualifies for exemptions and guide you through the application process; actual savings are determined by the administering authority.
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GET IN CONTACT WITH US
What is TNUoS and why is it increasing in 2026?
TNUoS stands for Transmission Network Use of System. It’s a charge that covers the cost of maintaining and upgrading the UK’s high-voltage electricity transmission network. From April 2026, TNUoS charges are set to rise significantly due to grid reinforcement and system changes. NESO forecasts a 94% increase in total fixed residual charges—from £3.84 billion in 2025/26 to £7.52 billion in 2026/27.
Why is my electricity standing charge going up even though my usage hasn’t changed?
You can try to mitigate future cost increases by reviewing your energy contract structure and checking eligibility for government exemptions like EII. Black Sheep Utilities offers free contract reviews and supplier strategy support to help businesses prepare for the April 2026 uplift.
How can I reduce the impact of rising TNUoS and non‑commodity costs?
Half-hourly data provides precise insight into your carbon footprint. This allows businesses to measure and track emissions more effectively, making sustainability initiatives such as electric vehicles, battery storage, or on-site renewable generation easier to manage and optimise. By linking usage to carbon impact, MHHS becomes a key enabler of the UK’s net zero transition.
Will securing a long-term energy contract protect me from standing charge increases?
Not necessarily. While locking in a contract now may help buffer against rising costs, many suppliers treat TNUoS and other non‑commodity items as pass-through. That means standing charges can still increase mid-contract. It’s important to understand your supplier’s methodology and contract terms.
What support is available for energy-intensive businesses facing higher electricity costs?
The UK government offers exemptions for Energy Intensive Industries (EII), which can reduce the policy-related portion of electricity bills by up to 60%. Black Sheep Utilities can assess your eligibility and guide you through the application process to help lower your non‑commodity exposure.
