The Short Version
The government has approved a massive upgrade to Britain's electricity and gas networks. Good for the future, but it's going to cost you.
Your bills will rise by about £108 per year by 2031 — split between electricity (£60) and gas (£48) networks. Most of this will hit your standing charge, not your unit rate.
The biggest jump happens in April 2026. The transmission fee on your electricity bill will nearly double overnight — from £51/year to £93/year. That's an extra 12p on your daily standing charge.
Why Is This Happening?
Three big reasons:
- Wind farms are in the wrong place. Most renewable energy is generated in Scotland and the North Sea, but most people live in the South. We need new power lines to move that electricity hundreds of miles.
- The grid is too small. Britain's electricity network was built for a different era. It can't handle all the new wind and solar power, so we're paying generators to switch off while firing up expensive backup power. Wasteful.
- Old pipes and cables are wearing out. Some infrastructure is decades old and needs replacing. Gas pipes are being swapped for plastic ones that could carry hydrogen in the future.
What's the Transmission Fee?
Every electricity bill includes a fee for using the national grid — the network of high-voltage power lines that carry electricity across the country. You've probably never noticed it because it's buried in your standing charge.
This fee is set to nearly double from April 2026:
Who Gets Hit Hardest?
Low energy users. These fees are fixed — you pay the same whether you use a lot of energy or a little. So if you're careful with energy, these charges make up a bigger chunk of your bill.
Businesses pay much more. The fees depend on how much electrical capacity your building has. A small office might see £1,700/year added to their bill. A supermarket or factory could face £10,000+ in extra costs.
Where you live matters too. If you're in Scotland or near offshore wind farms, you'll pay less (because you're close to where power is generated). If you're in London or the South East, you'll pay more (because electricity has to travel further to reach you).
Will My Fixed Tariff Protect Me?
Probably not. Most "fixed" energy deals only lock in the unit rate. Buried in the small print, you'll usually find a clause letting suppliers pass on network cost increases.
Look for terms like "non-commodity costs" or "transmission charges" in your contract. If they're there, your standing charge can rise even on a fixed deal.
Tip: When comparing tariffs from 2026 onwards, pay close attention to standing charges. A slightly higher unit rate with a lower standing charge might actually save you money — especially if you don't use much energy. Use our energy bill calculator to model different scenarios for your postcode.
Is There Any Good News?
Yes, eventually. The government argues these upgrades will pay for themselves:
- Less waste. Right now, we pay wind farms to switch off when the grid can't handle their power. Better infrastructure means less of this waste.
- Cheaper power. Once new power lines are built, cheap renewable energy from Scotland can flow to the rest of Britain, pushing down wholesale prices.
- Energy security. Less reliance on expensive imported gas means more stable bills long-term.
The catch? You pay now, benefits come later. The £108 in extra costs hits your bill immediately. The estimated £80 in savings won't fully materialise until the late 2020s or early 2030s.
Net impact: Even accounting for future savings, expect your bill to be about £30/year higher by 2031 due to network costs alone — on top of whatever happens to energy prices, taxes, and supplier charges.
What Can You Do?
- Check your contract. Does it allow pass-through of network charges? If so, your standing charge could rise mid-contract.
- Compare standing charges. From 2026 onwards, these matter more. Don't just focus on unit rates. Check how much of your own bill is standing charges.
- Use less at peak times. Some of these charges are based on when you use electricity. Avoiding 4-7pm in winter can help.
- Budget for it. Plan for roughly £50-60 extra on your annual electricity bill by April 2026, rising to £100+ by 2031.
Update: Standing Charge Rise Lower Than Expected
Good news — the April 2026 standing charge increase came in lower than originally forecast. We've published a full breakdown of the revised figures.
Read the update →Frequently asked questions
Why are standing charges rising on UK energy bills?
Standing charges are rising primarily because of the RIIO-3 network investment programme and higher TNUoS transmission fees. Ofgem approved £28 billion of grid spending for 2026-2031, and this is recovered through standing charges. The transmission network component alone is rising from £51 to £93 per year - nearly double.
How much are standing charges going up in April 2026?
Transmission charges are adding around £42 to £62 per year to bills in April 2026 - the specific increase for transmission network costs is approximately £20. Combined with other network changes, total standing charges will be noticeably higher from April 2026 onwards.
What is RIIO-3 and why does it affect my energy bill?
RIIO-3 is the Ofgem regulatory framework that sets how much electricity and gas network companies can charge between 2026 and 2031. It approved £28 billion of network spending to upgrade the grid for renewable energy. This investment is recovered through standing charges, which is why bills are rising even as wholesale energy costs fluctuate.
Can I avoid standing charge rises by switching to a fixed tariff?
Fixing your tariff before April 2026 locks in your current standing charge and unit rates until the fix expires. Once your fixed deal ends, any higher standing charges in place at that time will apply. Fixing now could save money in 2026 but means you would miss out if variable tariffs fall below your fixed rate.
Will UK standing charges come down after the grid investment is complete?
There is an expectation that bills will fall by around £80 per year once the new grid infrastructure is operational, as cheaper renewable electricity reduces the wholesale cost component. However, the net effect is estimated at around £30 per year higher by 2031 even after those savings are factored in, as network cost rises of £108 outweigh the £80 benefit.
For more context, see April 2026 Price Cap, Network Charges Update: December Figures Lower Than Feared, and Why UK Electricity Bills Follow Gas Prices.