How much are network charges rising on UK energy bills in 2026?

Transmission network charges (TNUoS) are rising by around 64% on average in 2026, adding approximately £42 to £62 per year to standing charges. This is significantly lower than the 94% increase that was feared when September 2025 forecasts put the total TNUoS bill at £7.52 billion.

Why are network charges lower than originally forecast for 2026?

The December 2025 draft TNUoS figures came in around 20% lower than the September forecast, bringing the total from a projected £7.52 billion down to approximately £6.0 billion. The reduction reflects updated cost modelling and a revised view of how grid investment costs should be allocated across the year.

What are TNUoS charges and why do they appear on energy bills?

TNUoS stands for Transmission Network Use of System charges - the fees that pay for maintaining and expanding the high-voltage electricity transmission network owned by National Grid. Ofgem approved £28.1 billion of grid investment spending, and TNUoS charges are how that cost is recovered from energy users over time.

Will being on a fixed energy tariff protect me from network charge rises?

A fixed tariff locks in your unit rates and standing charges for the duration of the fix, so you will not see the April 2026 network charge rises until your fixed deal ends. However, when you renew or move to a variable tariff, the higher network costs will be reflected in the new rates you are offered.

Will UK network charges keep rising after 2026?

Further rises are expected over the coming years as the grid investment programme ramps up. Final TNUoS tariffs for 2026-27 were due to be confirmed on 31 January 2026, with additional annual adjustments thereafter. The scale of the approved investment means network costs are likely to remain elevated throughout the late 2020s.

TNUoS 2026: Network Charges 20% Lower Than Feared

What's Changed

Back in September 2025, forecasts showed transmission charges (the fee for using the national grid) nearly doubling from April 2026. But Ofgem's final decision in December came in lower than expected.

The result: December's draft figures are about 20% lower than September's forecasts. Still a big increase — just not as bad as feared.

The Numbers: Before and After

September Forecast

£7.52bn

What grid operators expected to charge households

December Draft

~£6.0bn

Revised figure (~20% less)

For households: Standing charges now look like rising from around £42 to £62 per year from April 2026 — compared to the £80/year initially feared. That's a 23% reduction from earlier projections.

September vs December: How Much Different Customers Face

Comparing original September forecasts with revised December figures

Source: National Grid ESO forecasts (Sept 2025) and draft tariffs (Dec 2025)

What This Means for Different Customers

Most homes and small businesses are now looking at average increases of around 64% (down from the 94% originally forecast). But it varies a lot depending on how you're connected:

Smaller connections: ~41% increase (down from ~70%)
Larger industrial connections: ~104% increase (down from ~141%)

Important: These December figures are still drafts. Final numbers come out 31 January 2026. But the direction is clear — increases will be real but less severe than first feared.

Why the Reduction?

Ofgem approved £28.1 billion in grid investment — significantly less than what the grid operators asked for. They cut proposed spending by about 15%.

Key reasons:

Lower profits allowed: Grid companies won't make quite as much return as they wanted
Tighter spending scrutiny: Ofgem challenged more of the proposed costs
Spreading the pain: Some costs are being pushed to later years to soften the initial blow

What Hasn't Changed

The fundamental reasons for rising charges remain:

Massive grid upgrades needed to connect offshore wind farms
Old infrastructure needs replacing
More capacity needed as we electrify heating and transport

A 64% average increase is still the largest single-year jump in transmission charges most people will have experienced. And charges will keep rising through 2031.

What Happens Next

31 January 2026: Final tariff numbers published
1 April 2026: New charges take effect
2026–2031: Continued increases as grid investment ramps up

What to do: Even with the reduction, check your energy contract — especially if you're on a fixed deal. Many contracts allow suppliers to pass through network cost increases. Your standing charge could rise even mid-contract.

The Bigger Picture

The ~20% reduction is welcome news. But let's be clear: households will still see standing charges rise by roughly 48% (£42 to £62), and businesses face even bigger increases.

This is a fundamental shift in how we pay for the grid. The "good news" is relative — charges are rising less steeply than feared, but they're still rising significantly.