Important Update: NESO’s Five-Year View on TNUoS Charges
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The National Energy System Operator (NESO) has published its Five-Year View regarding Transmission Network Use of System (TNUoS) charges, highlighting significant increases:
• Allowed Revenue Increase: TNUoS ‘Allowed Revenue’ is projected to rise from £5.1 billion in 2025/26 to £8.9 billion in 2026/27, with further increases anticipated in the following years. (Based on the latest forecasts from the NESO published in late 2025, the ‘Allowed Revenue’ is projected to rise from £5.1 billion in 2025/26 to £7.65 billion in 2026/27.)
• TNUoS Demand Residual Impact: The change in the ‘TNUoS Demand Residual’ will have the most considerable effect on customer bills, with recovery amounts increasing from £3.8 billion in 2025/26 to £7.5 billion in 2026/27 and further rises thereafter.
• TDR Tariff Cost: The TNUoS Demand Residual (TDR) tariff is projected to be approximately 1.57p/KWh for 2025/26, escalating to around 3.05p/KWh in 2026/27, with additional increases expected in subsequent years. (Based on the latest forecasts from the NESO published in late 2025, the TDR tariff is projected to be around 2.58p/KWh in 2026/2027)
• Locational Element Adjustments: NESO has also made adjustments to the locational components of TNUoS tariffs, although the TDR tariff will account for the majority of the TNUoS charge for most businesses.
What This Means for Your Business
Rising Costs and Budgeting Challenges
With TNUoS charges expected to rise significantly, businesses should prepare for higher electricity bills. For large electricity consumers, TNUoS charges can represent a substantial portion of electricity bills. With drastic increases on the horizon—potentially nearly doubling by 2026/27—it’s crucial for businesses to review their energy budgets and financial forecasts.
Staying Informed
At D-ENERGi, we are dedicated to keeping our customers informed and prepared. If you would like to receive a quote tailored to your business needs, don’t hesitate to reach out to our friendly team or fill out our online form.
