From 1st April 2026, business electricity standing charges are forecast to rise sharply, with increases of around 94% on average. The main driver behind this uplift is higher TNUoS charges (Transmission Network Use of System), which fund the UK’s transmission grid. These charges apply regardless of consumption, meaning every organisation will be affected. Here’s what’s changing, why it’s happening, and what you can do to prepare.
Business electricity standing charges will rise significantly from April 2026.
TNUoS charges are the main reason costs are increasing, with them set to rise 94% on average.
For a typical HV1 band supply, that’s an extra £17 a day – over £6,000 a year.
Supply agreements with non-commodity charges as pass-through will see the rise first.
Some suppliers may reopen fixed deals, so check your terms.
Forecasts suggest standing charges could double again by 2030/31.
Early action is key: forecast costs, review procurement, and plan mitigation.
Actual rates for the April 2026 to March 2027 period will be published in January 2026.
The National Energy System Operator (NESO) latest forecasts show that from 1st April 2026, standing charges on business electricity bills will increase significantly. On average, the rise is forecast at 94% compared to 2025/26 levels. This is up significantly from the 2% published in April earlier this year.
For a HV1 supply, that equates to around £17 extra per day, or more than £6,000 a year. Looking further ahead, NESO’s five-year view suggests standing charges could double again by 2030/31.
Actual rates for the April 2026 to March 2027 period will be confirmed and published by NESO in January 2026. Until then, businesses should plan using the current forecast figures to prepare budgets and procurement strategies.
The key driver of this increase is higher TNUoS charges. These cover the costs of operating, maintaining, and upgrading the UK’s electricity transmission system.
As the country accelerates towards net zero, more renewable generation is being built in remote areas, far from the demand centres. Delivering that power requires significant grid reinforcement. Under the new RIIO-ET3 price control, transmission operators have higher revenue allowances to fund this investment, and those costs flow through to customers as TNUoS charges, which in turn push up standing charges.
RIIO-ET3 is Ofgem’s next five-year price control for electricity transmission (2026–2031). It sets how much revenue network companies can recover to fund upgrades to the UK grid. Those higher costs are passed through as Transmission Network Use of System (TNUoS) charges, which sit behind the rising business electricity standing charges from April 2026.
Pass-through contracts – Non-energy costs, including TNUoS charges, are itemised and flow directly onto invoices. This means businesses on these contracts will feel the increase immediately from April 2026.
Fixed contracts – These normally bundle in non-energy costs, shielding customers until renewal. However, some suppliers include clauses that allow them to reopen fixed deals if there’s a major regulatory change, meaning even fixed customers could see higher costs sooner than expected.
Review your terms now. Check whether your supplier has the right to pass on TNUoS-driven increases mid-contract. Knowing your position helps avoid unwelcome surprises and gives you time to plan.
Understand your exposure – Break down bills to see how much comes from standing charges and TNUoS.
Review procurement strategy – Engage early with suppliers or consultants to understand your options and timing.
Plan mitigation – Consider on-site generation, energy efficiency, or demand flexibility to reduce exposure.
Budget ahead – Build updated assumptions into forecasts and communicate likely impacts internally.
Standing charges — and the TNUoS costs that underpin them — are expected to keep rising as the UK modernises its electricity grid. While this investment supports a more resilient, low-carbon system, it comes with added costs for businesses. Those that prepare now, by aligning energy procurement with long-term strategy and resilience goals, will be better placed to manage risk and turn challenges into opportunities.
Want clarity on how rising standing charges and TNUoS costs will affect your organisation? Our experts can help you model the impact, review procurement options, and put a strategy in place to protect your budget while supporting your purchasing strategy. Get in touch today.
Standing charges may not have made the headlines yet, but with TNUoS charges rising, they’re fast becoming a major cost driver for UK businesses. By understanding what’s coming, reviewing your contracts, and acting early, you’ll be ready to manage the impact and move forward with confidence.