23/02/2026
Is your business prepared for the dramatic shift and increase in the government’s taxation for non-commodity energy charges?
From 1st April 2026, UK businesses face significant energy cost increases, driven primarily by a nearly 60% hike in Transmission Network Use of System (TNUoS) charges – nearly double the current rate. These non-commodity cost rises, associated with grid upgrades, will push up electricity bills by roughly £25 per megawatt hour (MWh), with further, ongoing increases expected.
With the Energy market Clean Power and Carbon Reduction target of 2030 fast approaching, the government’s Modern Industrial Strategy (MIS) will accelerate rapidly over the coming years, year-on-year.
Immediate Impact on businesses:
• Rising non-commodity costs will start to hit business energy contracts and invoices. Pass-through contract holders will see these costs immediately, while fixed contracts may not protect against these rising charges depending on their individual contract terms and conditions.
• TNUoS Charges Surge: TNUoS residual charges are set to almost double, severely impacting electricity standing charges due to RIIO-3 regulatory changes.
• Climate Change Levy (CCL): Natural gas will rise significantly, with the tax on gas increasing by 19.2% to align with electricity rates as of April 2026.
• Increased Network Costs. Gas and electricity network rates will rise under the new RIIO-3 period, increasing overall non-commodity costs.
Solution: Limit your business exposure, set financial targeting, check and clarify your current contractual supplier standing by arranging a free, bespoke, consultation with Empire Energy UK: https://www.empireenergy.co.uk/book-online