The 2026 cost surge that will hit your business energy bills

For many businesses, energy bills already feel like a constant pressure. Hidden within those bills are costs that have nothing to do with the price of gas or electricity itself. And in 2026, one of the biggest of those charges is set to double.

The National Energy System Operator (NESO) has forecast that Transmission Network Use of System (TNUoS) charges will rise sharply in April 2026 – a change that will flow directly into what companies pay each month.

So, what exactly is TNUoS, why is it rising so steeply, and what can you do about it?

What is TNUoS? Transmission costs explained

TNUoS stands for Transmission Network Use of System. It’s the charge suppliers and generators pay for the cost of building, running and maintaining the high-voltage transmission network: the pylons and cables that move electricity across the UK and offshore.

Although the fee is charged to suppliers, it filters through into customer bills. For businesses, it’s often wrapped into standing charges, so you’ll see the cost even if your usage doesn’t change.

The 2026 jump – forecasted rise from £4.8bn to £7.5bn

NESO’s latest five year outlook shows a striking increase.

• In its April 2026 forecast, annual residual supplier costs have jumped from £4.8bn to £7.5bn – a £2.7bn rise in just a few months.
• This means supplier and consumer TNUoS charges are expected to double from current levels.
• For households, this equates to a jump from around £51 a year to £93 and for SMEs, it will be felt through higher fixed daily charges.

Put simply: the cost of using the transmission network is climbing, and businesses will shoulder much of the increase.

How this flows into bills

Because TNUoS is recovered from suppliers on a per-site, per-day basis, the increase will largely show up as higher standing charges on bills.

That means:

• SMEs with multiple sites or meters will see bigger compounded rises.
• Energy-intensive businesses already under pressure from wholesale prices will be hit with additional fixed costs.
• Even companies with strong energy efficiency practices will feel the impact, because standing charges apply regardless of consumption.

NESO estimates this increase could add around 5% to electricity bills overall from April 2026.

Steps businesses can take

You can’t avoid TNUoS charges altogether, but you can take action to soften the impact:

• Review efficiency opportunities
  Lowering your overall usage helps reduce other non-commodity costs, which may offset some of the rise.
• Look at demand management
  Reducing peak-time demand can limit exposure to capacity and balancing charges, which are also forecast to climb.
• Seek smarter contract structures
  Fixed vs pass-through contracts, or hybrid models, may spread risk differently. Assessing these now can prepare you for the 2026 change.
• Consider onsite generation
  Commercial solar panels, battery storage and other distributed solutions won’t remove TNUoS, but they can reduce imported energy volumes and give you more control.

Future outlook – Ofgem’s role and possible mitigation

Final TNUoS rates for April 2026 are expected to be published in early 2026, once Ofgem makes its decision. While some refinements may happen, the broad direction is clear: transmission costs are rising, and that pressure is unlikely to reverse soon.

That said, Ofgem will continue to balance how charges are recovered between consumers and suppliers, and there may be mechanisms introduced to ease volatility. Businesses should stay alert to updates over the next 12–18 months.

Taking control before April 2026

The scale of the rise may feel outside your control, but the way you prepare isn’t. Businesses that take early action e.g. reviewing their contracts, addressing demand, and planning for efficiency, will be in a stronger position to absorb the shift when it comes.

If you’d like to understand how TNUoS and other non-commodity costs could affect your bills, start by reviewing your current energy setup. Troo can help you with this, explaining how non-commodity charges like TNUoS are affecting your bills, and highlight practical steps to reduce the impact. 

Check my set up