If you’re responsible for energy budgets, you’ll know that the wholesale price of electricity is only part of the story.
Typically, 60-65% of your electricity bill is made up of non-commodity costs – network charges and green levies that sit outside your contracted unit rate.
2026 and 2027 will see an overall rise in non-commodity charges, largely to modernise grid infrastructure and support the clean energy transition. To help you plan your energy budget, we’ve put together a breakdown of non-commodity cost changes for electricity in 2026 and 2027.
For a wider understanding of non-commodity costs, download our new Non-Commodity Cost Guide. We explain the different types of non-commodity costs, what they are for, and importantly, what you can do to reduce the impact on your energy bills.
Electricity non-commodity price changes: a breakdown
TNUoS: sharp increase from 2026 onwards
We are set to see a sharp increase in transmission network costs, to fund the large amount of transmission system upgrades and projects due over the next 5 years.
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April 2026-27: There will be an increase of up to 102% compared to April 2025 rates
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Rates until 2031: Much higher than previously forecast.
DUoS: stable but expect steep rises in 2027
DUoS are the charges for using the local electricity network, set by your regional Distribution Network Operator (DNO).
From April 2026:
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Standing charges are down 6% on average. Low Voltage (LV) sites will see larger reductions than High Voltage (HV) sites.
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Maximum Import Capacity (MIC) charges are up 5%on average.
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Red band charges (peak-time electricity rates) are (on average) up 1% for LV sites, up 4% for LVS sites (Low Voltage Substation), but down 7% on average for HV sites.
From April 2027:
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We see steep DUoS rises. Charges were relatively flat in 2025/2026 because DNOs had previously over-recovered revenue. With those monies now repaid, they will raise charges to fund infrastructure investment and rising operating costs.
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Standing charges increase between 65% and 77%
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Red band charges increase (up to 28% on HV).
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MIC charges increase – averaging around 0.77p/kVA/day higher than April 2026 charges.
BSUoS (Balancing Services Use of System): fluctuating
The cost of keeping the grid in perfect balance has been highly volatile due to external factors such as Covid, the energy crisis and geopolitical unrest.
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Fixed periods: Since 2023 BSUoS has moved to a “fixed rate” for 6-month blocks published in advance, with each new charging period correcting any previous under or over collection.
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Shorter notice: From April 2026, the notice period for these rates will be reduced from 9 months down to 3 months.
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Current forecast: April-September 2026 is lower than pr
eviously indicated, but October 2026 – March 2027 has been confirmed at a higher rate.
Renewable Obligation (RO): slightly down
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RO will reduce from 3.306p/kWh in April 2025 to around 3.2760p/kWh in April 2026. This is due to a technical change where the government will link the cost to CPI (Consumer Prices Index) inflation rather than the historically higher RPI (Retail Prices Index).
Contracts for Difference (CfD): stable until 2027
The CFD funds new low-carbon generation projects in the UK.
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The latest CfD forecasts reduce for most forward cases, with Q1 2026 interim levy around £10/MWh, similar to the past two quarters.
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Forward cases out to Q3 2027 are stable for now, however, Q3 2027 may see a rise to £20.67/MWh when the Drax biomass project joins the scheme.
Feed in Tariff (FiT): stable
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FiT remains steady. It remains in the 0.7-0.9p/kWh region, with reconciliations applied by most suppliers.
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Summer 2025 saw an uplift from some suppliers due to the brighter weather and lower net demand – if Summer 2026 sees similar weather, FiT will likely see more seasonal pricing.
Capacity Market (CM): increasing
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CM levels are projected to increase, expecting to breach £10/MWh (smeared unit cost) in winter 2025 – 2026, with auction figures remaining high for future years. The next auction is T-1 for winter of 2026 – 2027.
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T-4 for winter 2029 – 2030, is scheduled to be announced for March 2026.
AAHEDC: stable
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AAHEDC subsidises electricity distribution costs in specific, sparse areas, primarily the North of Scotland.
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It will remain in line with prior years, with a small decrease from April 2026
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The usual cost is around 0.042p/kWh.
Climate Change Levy (CCL): increasing
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Increasing from April 26 to 0.801p/kWh (from 0.775p/kWh) and again in Apr 27 to 0.827p/kWh for both electricity and gas.
Many of these charges (e.g. CFD, CM and FiT) are only known and published after the period that they cover and therefore pass-through contracts will get reconciliations (these can sometimes be over a year later).
New non-commodity charges
Three new levies have been introduced in recent years, to boost industrial competitiveness and fund nuclear and hydrogen production.
EII Support Levy (Network Charging Compensation Scheme)
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This levy on regular business consumers funds discounts for energy intensive industries.
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April 2025 saw suppliers billing from around £0.7-1.4/MWh.
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April 2026 sees an increase of 50%, as support for EIIs increases.
Regulated Assets Base Levy (RAB)
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This new charge is to help fund nuclear infrastructure.
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The interim rate is £3.49/MWh plus a small operational fee
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The next 2 years of quarterly price projections are relatively stable, around £3.50-4.50/MWh.
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