UK Businesses Face Soaring Energy Charges: What You Need to Know

In a recent feature with The Times, Liam Conway, co-founder of Greenfields Energy Group, shed light on a looming challenge facing UK businesses: significant increases in non-commodity electricity costs. While discussions in the media often centre on commodity prices like gas and electricity, this development concerns the less-discussed, but equally impactful, non-commodity costs.

What Are Non-Commodity Costs?

Non-commodity costs refer to charges beyond the actual cost of energy. These include distribution, transmission, taxes, and levies. For many businesses, these fees can make up a substantial portion of their energy bills, and they are set to rise dramatically in the coming months.

The Big Change: Transmission Costs in April 2026

The largest shift will arrive in April 2026, when transmission costs will increase sharply. Many businesses will notice the change in their standing charges, which could double. The impact varies depending on whether a business uses low-voltage or high-voltage supply, and whether they are on a pass-through contract or a fixed contract. In some cases, suppliers may reopen fixed contracts mid-term due to the scale of these increases.

Additional Cost Increases

Beyond April 2026, two other significant changes are imminent:

• October 2025: BSUoS Increase
  Balancing costs across the UK, known as BSUoS, will rise. Businesses on pass-through contracts will feel the effects immediately, while others will encounter higher unit rates when renewing contracts.

• November 2025: Nuclear RAB Tax
  A new Nuclear RAB levy will take effect at a rate of 0.3455 pence per kilowatt hour, adding yet another layer of cost to electricity bills.

Preparing for the Impact

Liam emphasizes the importance of impact assessments. The more meters a business has, the greater the effect of these standing charge increases. Understanding the cost implications early will help businesses plan, strategise, and potentially mitigate the financial burden.

Greenfield's Energy Group, along with five national trade bodies, is actively lobbying and raising awareness about these issues. Their mission is clear: ensure businesses are informed and prepared for these unavoidable changes.

Key Takeaway

The upcoming surge in non-commodity energy costs represents a substantial challenge for UK businesses, particularly in the manufacturing sector. By conducting thorough impact assessments and planning ahead, businesses can better navigate these rising costs. The sooner companies take action, the better positioned they’ll be to manage the financial strain.

Is it time to test a smarter approach?

At Greenfields Energy Group, we’re here to help businesses:

• Challenge assumptions in current energy strategies

• Identify hidden cost and risk exposures

• Design tailored procurement strategies that protect margins

To help businesses navigate the complexity of rising TNUoS charges, we’re offering a complimentary 15-minute Non-Commodity Impact Assessment Call.

In this session, we’ll review your current approach, uncover potential risks, and outline practical steps to reduce unnecessary costs