Big Changes Ahead: Transmission System Charges Set to Rise in April 2026
From April 2026, businesses across the UK will see significant increases in transmission system standing charges included within their electricity invoices. These changes are driven by major investment in upgrading the UK’s transmission network to improve reliability and future-proof the grid. While this is a positive step for infrastructure, it will have a noticeable impact on electricity invoices for many companies.
National Grid also forecast what they think these charges will be into the future. In addition to a significant increase in April 2026 they are forecasting that these charges will double (compared with April 2026) by April 2030.
How Are Charges Calculated?
Your charges depend on your banding, which is determined by:
- Voltage level
- Agreed capacity
From April 2026, the banding structure is changing slightly, meaning some sites may move up or, for a lucky few, it may go down.
Impact on Controlled Environment Horticulture
Many of our clients operate in the Controlled Environment Horticulture sector - a high-energy industry with seasonal demand patterns. These businesses often maintain high-capacity connections year-round, even though peak demand only occurs during certain months. Under the new structure, this could lead to significant cost increases, as capacity charges remain high regardless of seasonal usage.
Energy Intensive Industries
There are growing calls for the horticulture sector to be included within the Energy Intensive Industry (EII) exemption scheme. Under this scheme, businesses operating in eligible sectors and meeting the required business-level tests can receive exemptions from the indirect costs associated with funding renewable energy and capacity mechanisms.
In addition, with the introduction of the Network Charging Compensation (NCC) scheme in April 2024, qualifying businesses would also benefit from significant discounts on electricity network charges, including Transmission Network Use of System (TNUoS) charges.
Should the scheme open to horticulture, there is a thorough application process which we can support you through.
Are there any other options?
The band you are in is reviewed every 4 years so if you are only just over one threshold, reducing your capacity now can help to reduce costs in the future. Also, if your Agreed Capacity is more than double what you need there is an appeals process that can (but not always) trigger a Band change straight away.
Please get in touch if you would like to review how your charges will be changed from April 2026 onwards and discuss potential options to mitigate these costs.
