A guide to non-commodity cost rises on your electricity bill: 2026 and 2027

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.

A snapshot of non-commodity prices

This table shows non-commodity prices for electricity in 2024, 2025 and 2026, showing fluctuations across all the charges:

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.

• April 2026-27: There will be an increase of up to 102% compared to April 2025 rates
• 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:

• Standing charges are down 6% on average. Low Voltage (LV) sites will see larger reductions than High Voltage (HV) sites.
• Maximum Import Capacity (MIC) charges are up 5%on average.
• 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:

• 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.
• Standing charges increase between 65% and 77%
• Red band charges increase (up to 28% on HV).
• 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.

• 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.
• Shorter notice: From April 2026, the notice period for these rates will be reduced from 9 months down to 3 months.
• Current forecast: April-September 2026 is lower than previously indicated, but October 2026 – March 2027 has been confirmed at a higher rate.

Renewable Obligation (RO): slightly down

• 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.

• The latest CfD forecasts reduce for most forward cases, with Q1 2026 interim levy around £10/MWh, similar to the past two quarters.
• 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

• FiT remains steady. It remains in the 0.7-0.9p/kWh region, with reconciliations applied by most suppliers.
• 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

• 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.
• T-4 for winter 2029 – 2030, is scheduled to be announced for March 2026.

AAHEDC: stable

• AAHEDC subsidises electricity distribution costs in specific, sparse areas, primarily the North of Scotland.
• It will remain in line with prior years, with a small decrease from April 2026
• The usual cost is around 0.042p/kWh.

Climate Change Levy (CCL): increasing

• 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)

• This levy on regular business consumers funds discounts for energy intensive industries.
• April 2025 saw suppliers billing from around £0.7-1.4/MWh.
• April 2026 sees an increase of 50%, as support for EIIs increases.

Regulated Assets Base Levy (RAB)

• This new charge is to help fund nuclear infrastructure.
• The interim rate is £3.49/MWh plus a small operational fee
• The next 2 years of quarterly price projections are relatively stable, around £3.50-4.50/MWh.

Non-commodity cost trends 2026-27

How to reduce your non-commodity costs

The bottom line is that non-commodity costs are increasing.

While a few elements have reduced or stabilised in the short term, the wider trend is upward, driven largely by the need to fund long-term grid infrastructure upgrades and low-carbon technologies.

For most businesses, this means non-commodity costs will continue to take up a growing share of total energy spend over the next few years.

The good news is that businesses are not powerless. There are practical ways to reduce exposure and protect budgets — whether through reviewing how and when  energy is used, reassessing capacity levels, or making use of available schemes and procurement structures.

We’ve brought all of this together in our new Non-Commodity Cost Guide. It explains what each charge is, and importantly, how you can reduce your exposure to increasing costs.

Download our Non-Commodity Cost Guide to learn more. Or, get in touch with one of the experts at Sustainable Energy First via the form below.