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Non-Energy Charges: What's Changing in 2026/27

Understand rising network charges
Prepare for 2027 electricity cost changes
Identify available exemptions and relief
Expert advice on managing electricity costs

What You Need to Know

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Rising Network Charges and Government Levies (2026/27)

Business electricity costs continue to be affected by changes to transmission, distribution and balancing charges, alongside government energy policy costs.

For 2026/27, NESO's final TNUoS tariffs recover approximately £7.61 billion nationally, compared with £5.09 billion in 2025/26.

The Nuclear Regulated Asset Base (RAB) levy was also introduced in 2025 to support qualifying nuclear infrastructure projects.

What this means for you:

Your electricity costs may change depending on your location, consumption and contract structure. Reviewing your non-energy charges can help identify potential exposure and improve budget planning.

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EII Network Charge Compensation & Supporting Levy

Increased Compensation from April 2026

Eligible Energy Intensive Industries (EIIs) can now receive 90% compensation for qualifying TNUoS, DUoS and BSUoS charges, increased from 60%.

The compensation scheme is funded through a levy on electricity suppliers, which may be reflected in electricity prices.

What this means for you:

If your business qualifies, ensuring your EII eligibility and certification are up to date could significantly reduce your network charging costs.

Businesses outside the scheme should understand how supplier costs are treated within their electricity contracts.

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What This Means for You?

Budgeting is becoming more complex. Rising network costs and policy charges can influence your electricity expenditure, particularly where contracts include pass-through charges.

Contract renewal strategy matters. Understanding which non-energy charges are fixed and which may change can help protect your business against unexpected costs.

Consumption patterns matter. Depending on your charging arrangements, reviewing when and how you use electricity may help reduce certain network-related costs.

Government support is available. Eligible energy-intensive businesses may benefit from compensation or exemptions, including support being introduced through the British Industrial Competitiveness Scheme.

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What You Should Do Now

Review your electricity contract. Understand which non-energy charges are fixed and which are passed through.

Update your forecasts. Account for current network charges, government levies and potential changes from April 2027.

Check your eligibility. Businesses in qualifying sectors should review available EII compensation and BICS support.

Plan ahead for renewals. Assess different procurement strategies and the potential impact of future non-energy costs.

Speak to Advantage Utilities. Our specialists can review your electricity costs, assess your exposure and help identify opportunities to manage expenditure.

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What Are

Non-Energy Charges?

Non-energy charges are the costs businesses pay in addition to the wholesale price of electricity. They fund the networks, balancing services and government schemes that support the UK's electricity system.These include transmission (TNUoS), distribution (DUoS), balancing (BSUoS) and environmental policy costs.

Why does this matter?

Network charges are changing, affecting business electricity budgets.
Some businesses may qualify for exemptions or compensation.
Your contract structure determines how changes in non-energy charges affect your bills.

Non-Energy Charges

How can I reduce non-energy costs?

1. Understand your energy consumption

You can't manage what you can't measure. Understanding when and how your business consumes electricity is the first step towards identifying potential savings.

Advantage Analytics provides detailed visibility of your energy consumption, helping you monitor usage, identify inefficiencies and make informed decisions.

2. Review your electricity usage patterns

The timing of your electricity consumption can influence certain network charges, including elements of Distribution Use of System (DUoS) costs.

Where operationally possible, shifting consumption away from more expensive periods may help reduce costs. The potential savings depend on your meter, tariff and contract arrangements.

3. Improve efficiency and review your contracts

Reducing unnecessary electricity consumption through improved equipment, lighting and operational efficiency can lower consumption-related costs.

However, some non-energy charges are fixed or capacity-based, meaning lower consumption will not necessarily reduce every charge.

Reviewing your electricity contract, available exemptions and procurement strategy can help identify further opportunities to manage costs.