Business Electricity Costs Set to Rise 60% from April 2026
A major TNUoS charges increase is set to push business electricity costs higher in 2026. Here’s what it means for your tariffs and what to do next.
UK businesses are heading into a critical period for energy costs. From April 2026, Transmission Network Use of System (TNUoS) charges, the fees users pay to use the electricity network, are set to rise by more than 60%. This is the largest jump in recent memory and will directly impact business electricity costs and overall energy bills.
Many businesses are mistakenly hoping that recent news about the domestic energy price cap lowering will reduce costs across the board.
However, the domestic cap only affects households. Businesses pay separate non-commodity charges for energy network use, and these are rising sharply, not falling. Here’s everything you need to know about the average business electricity cost increase.
The increase is a direct result of the UK government’s Clean Power 2030 ambitions. To reach net-zero targets, the electricity system needs:
These investments are essential, but they come at a high cost, which is being passed on to businesses via TNUoS charges.
For many businesses, non-commodity costs are already a leading concern. With TNUoS rates increasing by over 60%, your operating costs could rise sharply, even if wholesale energy prices stabilise or fall.
This increase will feed directly into business electricity tariffs, meaning the average business electricity cost is likely to rise over the coming year.
Acting now could make a difference. Energy contracts agreed before April 2026 may help reduce exposure to the full TNUoS charges increase. Delaying could mean paying significantly more for the same electricity usage.
It’s tempting to think that energy prices are falling because of the domestic price cap, but this doesn’t apply to business energy.
Commercial consumers face different pricing structures, including network and non-commodity charges like TNUoS. These are currently rising at their fastest pace in years, which is why business electricity costs are increasing even when household headlines suggest otherwise.
Ignoring this difference could have serious financial consequences for your business.
The UK’s transition to clean energy is essential, but it comes with a cost. That cost is now being reflected in business electricity tariffs and overall energy spend. Acting early gives you more control.
