The regulated network charges that sit on every electricity bill rose sharply in April 2026 and are set to keep rising to 2031. They cannot be hedged away, and they apply whichever supplier you use. What can be managed is the capacity you reserve with your network operator, which is charged every day whether you use it or not.
Verification
- Verified as at:
- Source:
- NESO final 2026/27 TNUoS tariffs, published 30 January 2026; Ofgem Targeted Charging Review; Ofgem RIIO-3 Final Determinations, 4 December 2025; DCUSA Schedule 32; NESO Transmission Demand Residual Guidance (RIIO-3 bands 2026/27 to 2030/31)
- Last reviewed by:
- Omnium
Figures in this sheet were current at the verification date above. Regulated charges reset each April. If you are relying on a figure, check the source or ask us.
Designed A4 fact sheet, ready to print or circulate.
What these charges are
TNUoS
The transmission network: the pylons and major cables moving power across the country. Mostly a fixed standing charge set by your capacity band, plus a smaller location-based element. It resets every April.
DUoS
The local distribution network run by your regional operator. Part fixed, set by band, and part time of use, charged at different rates across the day. Reviewed annually.
Agreed capacity
The supply you reserve with the distribution network operator, measured in kVA. It is billed daily on the capacity you have agreed, whether or not you draw it.
What changed in April 2026
NESO published the final 2026/27 transmission tariffs on 30 January 2026. The volume-weighted average residual increase is 64 per cent from April 2026. Across individual capacity bands the increase ranged from 28 to 116 per cent.
These are final published tariffs rather than forecasts. Further annual increases are planned through to 2030/31, funding the transmission investment programme approved under Ofgem’s RIIO-3 price control. Ofgem’s Final Determinations of 4 December 2025 approved £28.1bn of upfront expenditure across electricity transmission, gas transmission and gas distribution, within a wider investment pipeline of around £90bn over the five years to 2031.
Status: LawThis is regulated cost recovery applied equally to every supplier. No supplier can tender it away.
Why capacity sets the charge
Ofgem’s Targeted Charging Review moved most transmission residual charging and around half of distribution residual charging away from usage and into fixed bands. For half-hourly metered sites, the band is set by agreed capacity.
The larger the capacity you reserve, the higher the band, and the higher the fixed charge, before a single unit is used. The bands were reviewed alongside the new price control in April 2026, so a site that sat comfortably in one band may now sit in a higher one for exactly the same operation.
The double cost of excess capacity
Excess capacity is charged every day on every kVA reserved, used or not. It can also cost a second time, through the band: capacity feeds the average that sets which residual band a site pays for.
The residual bands took effect on 1 April 2026 and hold until 31 March 2031. A site stays in its band for the whole period, and one allocation drives both the TNUoS and DUoS residual charges.
Capacity is usually set when a site is built or fitted out and then left untouched for years while the operation changes around it. Over-provision is common and rarely looked at.
Right-sizing, and what it is worth
Reducing agreed capacity lowers the capacity charge from the date of the change. It does not move the site to a lower residual band before April 2031, but it does lower the average capacity that sets the band from then.
Two points of judgement matter.
Headroom is essential and excess is waste. Capacity must cover the genuine peak with safe headroom, and must allow for any on-site generation being unavailable. If the unit is down, the grid carries the whole load. Sizing too tight risks penalty charges on the peak day.
Review before you renew. A reduction takes effect going forward and can take up to four months through the network operator. It does not recover a fixed standing charge already committed in a contract. The time to right-size is before you sign.
Why the timing matters for 2031
Status: LawSet by DCUSA Schedule 32 and NESO’s residual guidance.
The next residual bands start on 1 April 2031. Network operators must submit the capacity data for that banding by 31 March 2028, and each site’s band is confirmed to suppliers by 30 June 2028.
Allocation uses the site’s average agreed capacity over 24 months. The network operators have agreed the exact period between them; on the timetable in the rules it closes around the start of 2028, which means it is very likely running already. Every month at a lower capacity inside that window counts, and a reduction made late in 2027 barely moves the average.
A site can only change band before 2031 in defined circumstances, principally a change of use or configuration that moves agreed capacity or consumption by 50% or more, supported by a director’s letter. Trimming headroom from an unchanged operation does not qualify.
How the review works
- Analyse. Half-hourly demand, true peak, power factor and current band, from your own data. We assess the peak on the half-hourly record, never on a momentary spike, and we do not recommend a reduction without a full year of it.
- Size safely. A conservative capacity with genuine headroom, allowing for generation downtime and any known load growth such as EV charging, new kitchen plant or electric heat.
- Apply. The application goes to the distribution network operator, not the supplier, who only passes the charge through. We complete and manage it.
- Confirm. Check the lower capacity charge flows through to your bills.
What this costs
The review itself is free. If it finds a worthwhile reduction and you ask us to complete the work, we charge up to 25% of the first year saving, agreed in writing before we start, and the network operator application is included. If the review finds no worthwhile reduction we will say so plainly, and you pay nothing.
Our remuneration is shown openly. The fee is an Omnium management fee and is never described as a network charge.
A note on power factor
Where a site’s power factor is poor, that is a separate matter with its own charges and its own remedy. We flag it on its own rather than folding it into the capacity figure.
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Read next
Where this leads
- Capacity (kVA) review
Agreed capacity tested against a full year of recorded demand, then the reduction applied for.
- Multi-site cost control
One supply record across the estate, with sites compared on the same basis.
The first review costs nothing. Anything after it is quoted and agreed in writing.
Supporting sheets in this series
- Non-commodity charges
Taxes, levies and regulated network charges now make up a large share of a business electricity bill, and comparing unit rates alone misses where the cost sits.
Bills and charges · verified 29 July 2026
- Power factor and reactive charges
A poor power factor means a site draws more current than the work requires, and pays for it through reactive charges and inflated capacity.
Bills and charges · verified 29 July 2026
- Reading your energy bill
What every line on a commercial gas and electricity bill means, so you can check it is right and see which parts you can influence.
Bills and charges · verified 29 July 2026
Take this sheet into a meeting
Network charges and agreed capacity is available as a designed A4 fact sheet, dated and set for printing or circulation.
If this sheet raises a question about your own sites, speak to us.
