The UK energy market is changing quickly with businesses facing growing cost pressure from non-commodity charges, particularly Transmission Network Use of System (TNUoS).
Recent announcements suggest a 61% increase from April 2026, making this one of the most significant upcoming electricity cost drivers.
For businesses across Aberdeen and Aberdeenshire, already located in one of the highest transmission charging zones in the UK, these changes may have an even greater operational impact.
ARO works closely with clients to help them understand these changes and take practical steps to reduce their financial impact.
Why are TNUoS charges increasing?
TNUoS covers the cost of maintaining and upgrading the national electricity transmission network. Rising charges are largely driven by major infrastructure investment to support decarbonisation, alongside projects such as new nuclear generation.
In the north of Scotland region, businesses already face elevated TNUoS costs due to the distance electricity must travel from generation centres to major demand hubs in England. As a result, companies across the Grampian area may feel a disproportionate increase when these charges rise further in 2026.
Other non-commodity charges are also changing:
- Capacity Market charges, partial Renewable Obligation (RO) charges and Feed in Tariff charges are now indexed to CPI instead of RPI
- Distribution charges are expected to rise from 2028
- Pass-through contracts will reflect changes from April 2026
Combined electricity costs are expected to reach mid-to-high 20p/kWh levels, with much of the increase sitting in the standing charge, meaning that reducing consumption alone may not significantly lower bills.
How businesses can reduce exposure
ARO helps organisations forecast costs and develop mitigation strategies, including:
- Contract optimisation – Reviewing standing vs unit charges
- Capacity reviews – Ensuring you are not over-paying for network capacity
- British Industry Supercharge (BICS) exemptions – Potential reductions in RO and related charges from 2027
- Long-term forecasting – Scenario modelling to support procurement decisions
New market opportunity: Direct renewable supply
Peer-to-peer renewable contracts allow businesses to purchase electricity directly from identifiable renewable generators, with benefits including:
- Greater price transparency
- Reduced wholesale market exposure
- Improved ESG reporting
- Long-term price stability
- A reduction in renewable energy charges
As network charges rise, these agreements are becoming commercially attractive as well as environmentally beneficial.
“With TNUoS charges set to rise significantly, businesses need to act now. At ARO, we guide our clients through these changes, helping them manage costs effectively while staying on track with their sustainability objectives.” - Joseph Letras, Sustainability Director, ARO
How ARO supports you
ARO combines market expertise, regulatory insight and sustainability knowledge to translate complex changes into clear action. We help businesses forecast costs, optimise contracts, and align energy procurement with long-term sustainability goals.
For further information regarding the risks and opportunities emerging across the electricity market, contact ARO.