At Direct Global, we work closely with organisations to help them navigate complex energy costs. In this blog, we explain what’s changing with TNUoS charges in 2026 and what it means for your business.
From April 2026, UK businesses will face some of the largest increases in electricity network charges in recent years, driven by changes to Transmission Network Use of System (TNUoS) charges. These increases will impact business electricity bills across all sectors, making it more important than ever to understand what TNUoS is, why costs are rising, and how businesses can prepare.
What Are TNUoS Charges?
TNUoS (Transmission Network Use of System) charges are applied to electricity users to pay for the cost of building, maintaining, and operating the UK’s high-voltage electricity transmission network. This network transports power from generators – including offshore wind farms and large power stations – to distribution networks and major demand centres.
For most businesses, TNUoS charges are recovered as part of the standing charge on an electricity bill, rather than being linked directly to how much energy is consumed. This means businesses can see rising costs even if their electricity usage stays the same.
Why Are TNUoS Charges Increasing in 2026?
The increase in TNUoS charges from April 2026 is largely driven by the next regulatory price control period for electricity transmission, known as RIIO-ET3.
Key drivers include:
Major Investment in the Electricity Grid
The UK is undergoing a significant energy transition, with more renewable generation – particularly offshore wind – connecting to the grid. Much of this generation is located far from where electricity is consumed, requiring extensive upgrades and expansion of the transmission network.
Higher Allowed Network Revenues
Under the RIIO-ET3 framework, transmission owners are being funded to deliver large-scale infrastructure investment to support net-zero targets and long-term energy security. These costs are recovered through network charges, including TNUoS.
Shift Toward Fixed Charges
A greater proportion of transmission costs are now recovered through fixed daily charges. As a result, many businesses will feel the impact regardless of consumption levels, particularly multi-site organisations.
How Much Are TNUoS Charges Expected to Rise?
Industry forecasts and final tariff publications indicate that TNUoS charges will rise by around 60% on average from April 2026, compared with the previous charging year. While final figures vary depending on meter type, voltage level, and site characteristics, these increases represent a material uplift in non-commodity electricity costs for businesses.
Although final tariffs came in close to earlier draft forecasts, the scale of the increase remains significant and will continue to affect electricity bills throughout the RIIO-ET3 period.
How Will TNUoS Charges Impact Business Electricity Bills?
Higher Standing Charges
As TNUoS is largely recovered through standing charges, businesses may see higher fixed costs on their bills, even if usage is unchanged.
Increased Budget Pressure
Rising non-commodity costs can significantly affect annual energy spend, particularly for organisations with multiple meters or larger sites.
Delayed Impact for Fixed Contracts
Businesses on fixed-price electricity contracts may not feel the impact immediately, but TNUoS increases will be reflected when contracts renew or new agreements are put in place.
Which Businesses Are Most Affected?
All electricity users contribute to TNUoS charges, but the impact can be more pronounced for:
- Businesses with multiple sites
- Higher-voltage or higher-capacity connections
- Organisations with limited flexibility to reduce fixed charges
Some energy-intensive industries may qualify for exemptions or relief schemes, but for most businesses, these increases will flow directly through to bills.
How Direct Global Helps Businesses Manage Rising TNUoS Costs
At Direct Global, we understand that non-commodity costs like TNUoS are complex, unpredictable, and often overlooked until they rise sharply.
We support our customers by:
- Explaining how network charges are built into electricity prices
- Assessing exposure to non-commodity cost increases across portfolios
- Supporting smarter procurement and risk management strategies
- Helping businesses plan ahead for known regulatory changes
By factoring TNUoS and other network costs into your wider energy strategy, we help reduce surprises and improve long-term cost control.
Preparing for TNUoS Charges in 2026
With changes coming into effect from April 2026, now is the time for businesses to:
- Review upcoming contract renewals
- Build network charge increases into budgets
- Seek expert guidance on procurement and risk strategy
Understanding how TNUoS charges work – and how they are changing – is essential to staying in control of energy costs.
Final Thoughts
The 2026 TNUoS charge increase is one of the most significant shifts in UK electricity network costs in recent years. While the investment behind it is critical to delivering a low-carbon, resilient energy system, the impact on business electricity bills will be substantial.
At Direct Global, we’re here to help businesses understand these changes, plan effectively, and make confident energy decisions in a rapidly evolving market.
If you’d like to discuss how rising TNUoS charges could affect your organisation, speak to your Direct Global account manager or get in touch with our team.
