From April 2026, the UK will see a significant increase in energy prices, a projected increase of 60%, affecting businesses nationwide. This hike is driven by a surge in Transmission Network Use of System (TNUoS) charges. This jump is to fund upgrades to the national grid required to achieve the UK’s net-zero goals.
And the spike is significant: the TNUoS “Allowed Revenue” is jumping from £5.1 billion in 2025-2026 to more than £8.9 billion in 2026-2027, and further increases are expected until 2030/2031, when TNUoS revenue will jump again to £13.6bn.
The upshot is that energy-intensive organisations and businesses are heading towards a significant rise in costs come April 2026 and beyond.
Key Takeaway for Businesses Ahead of the 2026 Energy Increase
The main portion of the 2026 TNUoS energy increase will be in the form of Standing Charges, which are fixed daily fees to cover any infrastructure maintenance and similar necessities. But taking a proactive strategy, in the form of audit, procurement and consultations, will maximise energy-use efficiency and save costs in that sphere.
Find out how Renew and Sustain can transform your business’s energy consumption.
Who Will Be Affected the Most by the New 2026 TNUoS Charges?
The increase will mainly affect businesses that are in the High Voltage (HV) and Extra High Voltage (EHV) bands, such as:
- High-energy use businesses
- Manufacturers
- Data centres
- Multi-site operators.
Let’s go a little deeper into the 2026 TNUoS surge, what it means for your business, and how you can best prepare:
What Is the Reason for the 2026 TNUoS Increase?
The reason behind the uptick in energy prices coming in 2026 is:
- In a word, upgrades. The grid needs billions of pounds worth of critical work to prepare the network for net-zero goals and a more sustainable future; the TNUoS charges will pay for this.
- This “maintenance charge” is implemented through RIIO-ET3. This is Ofgem’s five-year framework for revenue regulations, which highlights the price controls permitted during the timeframe. This segment covers April 1, 2026 to March 31, 2031.
Quick Look: Impact of TNUoS 2026 on Businesses
There are a few elements of energy prices for businesses in 2026 that are at play:
- Higher Standing Charge: For all businesses, the 2026 energy increase will include a higher daily residual charge per meter, known as a Standing Charge, which is paid regardless of energy consumption. The 2026 TNUoS charge increase will hit large, energy-intensive businesses or multi-site organisations the hardest.
- Regional Variations: Due to the Regional Energy Strategic Planning, the 2026 energy increases will affect some areas differently. For example, South Wales, South West England, and South East England will face the steepest tariffs because they are further from generation hubs.
- High-Risk of Pass-Through Contracts: These contracts will directly increase energy costs for businesses, as they are determined by the supplier’s level.
Related Reading: What Is Energy Procurement? A Guide to Cutting Costs and Securing the Best Deals
Regional Variations of TNUoS 2026
| Region / Area | Trend in 2026 TNUoS Charges | Standing Charge Variation | Key Drivers | What This Means for Your Business (RESP Perspective) |
| South West England | Higher projected increases | Standing charges likely higher than national average | Less local generation, more reliance on imported power | Regional plans aim to encourage local energy, storage, and network upgrades, helping businesses avoid big future transmission costs. |
| South East & Greater London | Above-average increases forecast | Standing charges among the highest in the country | High demand and congestion, distance from large power sources | Plans focus on smart infrastructure upgrades and flexible solutions to ease grid pressure and keep energy costs more predictable. |
| East of England | Moderate or mixed changes | Slightly above-average standing charges | Growing demand, electrification trends | Planning supports local renewables and storage to reduce peaks and help businesses save on high-demand periods. |
| North West, North East & Yorkshire | Lower or more stable costs | Below-average standing charges | Strong local generation | Plans aim to protect regional advantages while supporting growth and new electricity demands, helping businesses benefit from lower network charges. |
| Scotland | Historically lower costs for demand users | Generally below-average standing charges | High renewable generation exporting south | Planning balances exports, network improvements, and local demand growth, helping businesses avoid sudden spikes in charges. |
| Wales | Mixed regional profile | Around national average | Balancing generation and transmission | Plans focus on smart, local solutions to make the grid more efficient and energy costs more predictable for businesses. |
TNUoS 2026: Key Timelines and Data
- January 30, 2026: Final TNUoS tariffs published, confirming that a sixty to sixty-five per cent increase is expected.
- April 1, 2026: The hiked TNUoS energy charges come into effect.
- Until March 31, 2031: The RIIO-ET3 price control, which governs Transmission Network Use of System (TNUoS) charges, will run for five years, from 1 April 2026 to 31 March 2031.
How Is TNUoS Calculated in 2026?
Although the TNUoS price increase will be reflected in businesses’ Standing Orders, a few elements are considered when calculating the charge. They are:
- Fixed Residual Charges: The primary increase comes from high fixed costs per site/day, based on the meter’s voltage level (LV, HV, EHV) and agreed kVA capacity/banding.
- Location-Based Demand: Varies by 14 demand zones, with areas furthest from generation hubs facing higher costs.
- Generator Use: Based on Transmission Entry Capacity (TEC) and location, with adjustments for Annual Load Factors (ALFs).
How Businesses Can Offset the 2026 TNUoS Energy Price Increase
Let’s outline key ways businesses can reduce energy-related risks, and how Renew & Sustain can provide expert support to drive cost-savings and more sustainable green energy options.
Understand and Optimise Capacity
A common pitfall of business energy use is either paying too much or risking penalties by overusing. kVA analysis and capacity planning are key pieces of work that can identify whether a site is paying for unused capacity or operating too close to its limits. Reducing excess capacity lowers ongoing network charges, while avoiding exceedance penalties protects against unplanned costs.
Demand Insights
Businesses that want to see exactly which areas, processes, or departments are causing inefficiencies should consider Smart submetering. This provides granular, real-time insight into your business energy meter and will reduce exposure to the 2026 TNUoS cost jump.
Audits Equal Business Energy Efficiency
Wasted energy, heat loss, and inefficient equipment all contribute to energy waste, something most high-usage businesses can rarely afford. Renew & Sustain create business audit strategies tailored to each client’s specific operations, risk profile, targets, and needs, ensuring the impact is felt across every pocket of the business. This level of business energy audit could be crucial after the 2026 energy price hike.
Read more about Renew & Sustain’s personalised business energy audits.
Smarter Procurement Strategy
Businesses can future-proof their energy consumption and maximise savings with an expert energy management consultant. At Renew & Sustain, we use our vast network of energy suppliers to lock in the best contracts and rates for businesses, and on top of ensuring that you never pay over the odds, you will also be contributing towards a more sustainable future. Another element of business energy procurement is a holistic approach, encompassing gas, power, and, where needed, water and telecoms — all streamlined under one efficient and more eco-friendly energy strategy.
Future-Proof with Sustainable Energy Sources
Businesses with high energy costs will be aware of how important sustainable energy sources are, and will be in the near future, which will help protect against rising costs and reduce reliance on the more traditional, volatile fossil-fuel energy sources.
Renew & Sustain’s combination of technical expertise, strategic procurement, and sustainable energy consultancy will guide businesses through the 2026 TNUoS increase. Taking the time to audit, calibrate and streamline your business’s energy bills, with a green future in mind, creates a culture where efficiency, cost-effectiveness and sustainability go hand in hand.
Your Business and the 2026 TNUoS
The TNUoS 2026 business energy price increases are inevitable and will largely take the form of Standing Charges, a daily fixed rate. However, there are still impactful strategies that businesses can implement to ensure maximum energy efficiency and offset the added cost of the 2026 TNUoS Standing Charge.
Renew & Sustain can guide your business’s energy use into a cost-effective and environmentally friendly future. Get a free business energy quote here.
2026 Business Energy Rates FAQs
In simple terms, why are UK business energy rates expected to rise in 2026?
Ofgem has announced that, come April 2026, there will be a new threshold for energy prices due to essential maintenance costs and grid upgrades to support net-zero goals, known as the Transmission Network Use of System (TNUoS) charges. These will largely be seen in bigger Standing Charges.
The two main reasons for the increase are:
- Critical grid maintenance
- Upgrades THAT are needed support sustainable energy in the UK and meet net-zero targets.
Can I compare TNUoS charges across different energy suppliers online?
Yes, but the 2026 TNUoS increase charges are best explored by a specialised energy consultant, as they depend on location, voltage (such as High Voltage and Extra High Voltage bands), and meter type.
What is the Transmission Network Use of System?
These are charges in the UK gathered to go towards the costs of maintenance of high-voltage electricity networks, as well as building and operating them. The National Energy System Operator sets them each year.
