Have you prepared for rising energy costs?

Energy: Paul Hughes, PLH Utilities

Businesses have been hit hard over the last two or three years on their energy costs. And just when you thought it couldn’t get any worse – it is!

The price you pay for the ‘hidden’ part of your electricity bill – standing charges and also the unit price – is set to be calculated differently.

Key questions

Are standing charges going to keep increasing over the next five years? 

The Transmission Network Use of System (TNUoS) is a fee charged by the National Grid for the use of the UK network. It covers system maintenance, operation and upgrades up and down the country.  

If you are on a pass-through contract, you will get a breakdown of these non-commodity costs. However, if you’re on a fixed contract, your energy bill will be summed up into one number, meaning you will not be able to see the breakdown of your bill.

The most important thing to note is that the National Grid published its five-year view on TNUoS tariffs for 2026/27, and the general overview is that the tariff we pay now is set to rise and continue to rise over the next five years exponentially.

So, what does this mean for businesses come 2026? 

To put it simply, you will notice that your standing charges will increase significantly. This is mainly due to the upgrades required to support the increase of renewable energy sources in the grid.

Example costs

• Small Office (0–80 kVA, LV Band 1). In 2025, the standing charge is around £4.16 per day. From 2026, this is expected to rise by 75% to £7.28 per day. An increase of over £1,300 in just one year.
• Large Business (up to 1000 kVA. Eg. a supermarket). In 2025, the standing charge is around £26 per day. From 2026, this is expected to rise by 83% to £48.23 per day. This is a cost increase of over £8,000 in one year.  

These examples show just how much your business could be charged under the new TNUoS rates. Staying informed and reviewing your energy contracts in advance can help you manage costs.

Market-Wide Half-Hourly Settlement

Are you aware that the market-wide half-hourly settlement began on October 22, 2025?  Electricity use will now be measured and billed using actual half-hourly meter readings instead of estimates.

Until now, most homes and small businesses have been billed based on estimated use, with occasional meter readings. However, larger businesses already use half-hourly meters that track their usage. With MHHS, this system will be extended to almost all meters, supported by the rollout of smart meters. The aim is to make the energy system smarter by reducing waste and balancing supply and demand in real time. 

To get ahead of the game, if you haven’t got a smart meter – get one fitted. You’ll then get access to data showing your usage in half-hour segments. It will highlight any areas where savings can be made.