April 1st Energy Cost Increase: TNUoS, DUoS & Rising Non-Commodity Costs for UK Businesses

Energy Costs Rising from April: How New Network Charges Affect Your Business

Beyond the wholesale spikes, Q2-26 marks a historic rise in non-commodity costs (NCCs).

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

ENERGY CONSULTANCY OF THE YEAR 2025

Publish Date:

April 1, 2026

The April 1st Regulatory Step-Change (TNUoS & DUoS)

Beyond the wholesale spikes, Q2-26 marks a historic rise in non-commodity costs (NCCs).

  • Grid Re-investment (RIIO-ET3): April 1, 2026, sees the implementation of the new transmission charging regime. Transmission Network Use of System (TNUoS) charges have risen by an average of 64% to fund the Great Grid Upgrade.
  • The "Double Whammy": Commercial consumers are facing higher unit rates due to Iran and higher standing charges due to UK infrastructure. NCCs now represent over 60% of the total delivered electricity bill for most SMEs.

How Can Advantage Help? 

Our sustainability department continue offer an ever-increasing range of products and technology aimed at reducing energy consumption and associated costs as well as driving down carbon emissions. We will of course continue to keep you updated around these initiatives, but please do reach out to your designated point of contact should you wish to explore your options in this regard.

In terms of procurement, we will of course continue to monitor markets with a view to helping customers navigate the unprecedented circumstances and ascertain when constitutes the best time to seek a contract extension.

Our popular flexible procurement options continue to be an option for an increasing number of clients on either a standalone basis or as part of a grouped basket. This often facilitates access today/month ahead trading markets which have proved to be particularly beneficial to many clients over the winter period.

BULLISH IN Q2

  • IRAN WAR AND GEOPOLITICAL FALLOUT

  • COMPETITION FOR LNG

  • LOW EUROPEAN STORAGE

  • POLITICAL & ECONOMIC INSTABILITY AND UNCERTAINTY  

  • RUSSIA/UKRAINE WAR

RANGEBOUND IN Q2

  • VOLITILITY & UNCERTAINTY

  • CARBON

  • OIL PRICES

BEARISH IN Q2

  • MILD SUMMER START

  • WHOLESALE FUTURES PRICES – 2028 & BEYOND

  • TRUMP’S TARIFFS

  • PROSPECT OF CEASEFIRES

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