Author Archives: Ellen Rea
Over the past few days, headlines have been dominated by the escalating conflict involving Iran and the potential disruption to global energy markets.
Why the Middle East Matters for Global Energy
The Middle East remains one of the most important energy regions in the world. A significant portion of global oil and liquefied natural gas (LNG) is transported through the Strait of Hormuz, a narrow shipping route between Iran and Oman.
Under normal circumstances, around one fifth of the world’s oil supply passes through this route every day. Because of this, any threat to shipping in the area immediately causes concern in global energy markets.
When conflict escalates in the region, markets react quickly as traders anticipate potential supply disruptions.
How the Market Has Reacted
We’ve already seen a strong reaction across global energy markets.
Oil prices have surged, with Brent crude rising above $110 per barrel, the highest level seen since the energy crisis of the early 2020s.
Gas markets have also responded sharply. Wholesale gas prices have recorded their largest two-day spike on record, reflecting concerns that disruption to LNG exports could tighten global supply.
What This Means for UK Businesses
For businesses in the UK, increases in global energy prices don’t usually translate into higher bills immediately.
However, they can feed through into wholesale electricity and gas costs over the coming weeks and months.
The key factor now will be how long the disruption lasts. If shipping routes stabilise quickly, markets may begin to settle. But if supply remains restricted or tensions escalate further, volatility could continue and prices may remain elevated.
Why Energy Strategy Matters During Volatile Markets
Periods like this highlight the importance of having a clear energy procurement strategy in place.
Businesses that leave procurement decisions until their contract renewal date can find themselves exposed to sudden market spikes.
By contrast, many companies choose to secure energy pricing strategies years in advance, helping protect themselves from short-term market volatility.
Planning Ahead for Energy Renewals
If your energy contract renewal is approaching, now is an important time to start reviewing your options.
Monitoring the market and exploring procurement strategies early can help businesses avoid being locked into contracts during periods of extreme price movement.
How GEAB Can Help…
At GEAB, our team monitors energy markets closely and works with businesses to develop procurement strategies that minimise risk and provide greater cost certainty.
If you’d like to understand how current market conditions could affect your business energy costs, get in touch with our team for expert guidance.
Get in touch – Green Energy Advice Bureau
From April 2026, businesses across the UK will feel the impact of sharply higher energy network charges. Final Transmission Network Use of System (TNUoS) rates published by the National Energy System Operator confirm what many of us in the industry expected increases of more than 60% year on year.
And while this aligns with projections, the reality for UK businesses is simple energy costs are changing again… and this time, it’s structural.
This Isn’t About Wholesale Prices
For years, businesses have focused on commodity rates, watching wholesale markets rise and fall, fixing contracts at the right time, managing risk around supply volatility.
But this next wave of cost pressure isn’t driven by gas prices or global events.
It’s network investment.
The UK’s Clean Power 2030 ambition requires unprecedented levels of transmission infrastructure to connect renewable generation, reinforce ageing grid assets and decarbonise the power system. That investment has to be funded and it is increasingly being recovered through network charges like TNUoS.
Gas networks are following a similar trajectory under the RIIO-3 regulatory framework.
Non-commodity costs are no longer a secondary line item. For many businesses, they’re becoming the dominant cost pressure.
The Real Risk: Passive Energy Procurement
The businesses most exposed over the next two years won’t necessarily be the highest users of energy.
They’ll be the ones without a strategy.
TNUoS charges are capacity-driven. They interact with demand profiles, KVA banding, peak usage behaviour and contract structure. Two businesses using the same amount of electricity could see materially different cost impacts depending on how their supply is structured.
Energy is no longer just something you buy.
It’s something you design.
What Smart Businesses Are Doing Now
Forward-thinking organisations are already:
- Reviewing their KVA and capacity requirements
- Stress-testing contracts against rising non-commodity costs
- Assessing on-site generation and demand management
- Understanding exposure to fixed vs pass-through structures
- Modelling 2026–2028 cost scenarios now — not next year
The transition to a lower-carbon grid is necessary. It’s positive. But it is not cost-neutral.
There is no getting away from the fact that the infrastructure required to decarbonise Britain will have a material financial impact on businesses. The question is whether that impact is managed or absorbed.
This Is a Strategic Moment
We are entering a phase where energy procurement is becoming a board-level discussion again — not because of crisis volatility, but because of structural reform.
Businesses that treat this as “just another increase” will feel it.
Those that treat it as a catalyst to rethink their energy strategy will control it.
At GEAB, we’re already working with organisations to model these changes, redesign supply structures and ensure compliance while protecting margin.
The 60% rise isn’t the headline.
The headline is this: non-commodity costs are now the story and strategy matters more than ever.
kVA & TCR Banding- The Hidden Drivers of Business Energy Costs
For many businesses, energy procurement focuses on one thing… the unit rate.
But in 2026 and beyond, some of the biggest cost drivers on electricity bills won’t come from how much energy you use, they’ll come from how your site is classified.
Two of the most overlooked factors are kVA capacity and TCR banding.
Understanding both is essential if you want to control rising non-energy charges.
What Is kVA Capacity?
kVA (kilovolt-ampere) capacity is the maximum amount of electricity your site is allowed to draw from the grid at any one time.
Think of it as your electrical allowance.
If your contracted capacity is set too high, you may be paying for access to power you never use. If it’s set too low, you risk excess capacity charges or operational issues.
Many businesses have not reviewed their capacity in years. Operations change, equipment becomes more efficient, sites downsize, yet the agreed capacity often stays the same.
As network charges increase, excess capacity becomes more expensive to carry.
What Is TCR Banding?
TCR (Targeted Charging Review) banding was introduced to change how certain network charges are recovered.
Instead of charging purely based on usage, businesses are placed into bands based largely on their agreed capacity.
The higher your capacity band, the higher your fixed network charges.
This means two businesses with similar electricity usage can pay significantly different network costs simply because they sit in different capacity bands.
In some cases, businesses are sitting in higher bands than necessary due to historic capacity agreements.
Why This Matters More in 2026
Network and infrastructure costs are rising. As a result:
- Fixed charges are forming a larger proportion of total bills
- Capacity-related costs are becoming more visible
- Incorrect banding is becoming more expensive
Reducing consumption alone will not always reduce these charges.
That’s why contract structure and capacity reviews are now as important as negotiating price.
Common Risk Indicators
You may want to review your kVA and TCR position if:
- Your capacity hasn’t been reviewed in several years
- Your business operations have changed
- You have reduced energy usage but bills remain high
- You don’t have visibility of your maximum demand data
Many businesses are unknowingly overexposed simply because no one has reassessed their position.
The Commercial Reality
Two businesses with identical usage can have very different electricity bills.
The difference is often not price per unit, it’s structure, capacity and classification.
As non-energy charges continue to rise, reviewing kVA capacity and TCR banding is no longer optional for cost-conscious businesses. It’s a necessary part of strategic energy management.
How GEAB Supports Businesses
At The Green Energy Advice Bureau, we help businesses:
- Review contracted capacity levels
- Assess TCR banding exposure
- Analyse maximum demand data
- Identify opportunities to reduce unnecessary network costs
Our role is to provide clarity, not complexity helping businesses understand where costs sit and how to manage them effectively.
If you would like a no-obligation review of your current capacity and banding position, speak to the GEAB team.
With changes to government legislation and a mandatory deadline of December 2026, it’s important your business becomes compliant with new requirements around MHHS. To prevent getting left behind, we’ve compiled a full guide detailing exactly what this means for you and how we can help with our free meter upgrade appointments.
What is Market Wide Half Hourly Settlement (MHHS)?
Market Wide Half Hourly Settlement (MHHS) is a compulsory government mandate that requires all UK energy meters to be switched to ‘Half Hourly’ by December 2026. This essentially means that your meter will send meter readings automatically every 30 minutes. This is as opposed to traditional meters, which send readings monthly (or do not send automatic reads at all).
Some consumers already have this in place. If you’re one of them, then you do not need to do anything. For the majority of UK businesses though, this means that the existing meter will need to be exchanged or altered to comply with the new rules.
What are the benefits of Market Wide Half Hourly Settlement (MHHS)?
MHHS offers a number of benefits including accurate billing and real-time energy monitoring. This allows you to better understand and manage both your energy usage and your carbon footprint. It is also understood that MHHS adopters may be able to take advantage of new energy tariffs and products, which could be more competitive than those available to those still using traditional meters.
How Does Market Wide Half Hourly Settlement (MHHS) impact electricity pricing and billing for consumers?
The data from your Half Hourly meter will allow for more accurate billing and monitoring of your consumption. With more visibility of how and when you use your energy, you will be more equipped to manage your bills and usage. In turn, this will make it easier for your organisation to achieve its own climate goals.
How soon must I act on Market Wide Half Hourly Settlement (MHHS)?
Whilst the official deadline is December 2026, the wheels of MHHS are already in motion across the industry. Suppliers and Meter Operators are running programmes like this one to get you up to standard ahead of time so that you avoid any bottlenecks that hit next year.
We can’t guarantee that these programmes will remain free of charge when demand peaks closer to the deadline, so we recommend taking advantage of our free meter upgrade appointments now.
How do I know if my meter needs to be changed?
There are many different types of meters on the market, all with varying capabilities. What needs to happen for you will depend on what you already have in place.
Some Smart Meters already record at HH intervals or have the ability built in, just not switched on. Other meters may need to be upgraded or require a communication device. Your Account Manager will be able to provide more information about what’s right for you.
How does Market Wide Half Hourly Settlement (MHHS) work in electricity markets?
Market Wide Half Hourly Settlement (MHHS) works by tracking your energy consumption in half-hourly intervals. These readings are then sent to your supplier (via a data aggregator), and used to provide accurate bills and consumption analysis.
What role does Market Wide Half Hourly Settlement (MHHS) play in renewable energy integration?
The UK government aims to reduce all direct emissions from public sector buildings by 50% and 75% by 2032 and 2037, respectively, compared to a 2017 baseline. The ultimate goal is for all UK emissions to reach net zero by 2050. Market Wide Half Hourly Settlement (MHHS) will play a significant role in achieving these targets by helping consumers to become more informed about their individual environmental impact.
The data provided through MHHS will also allow the National Grid to understand vital benchmarks such as overall demand and peak usage times, enabling them to ensure that they have enough renewable resource to accommodate the country’s needs.
Electricity Costs Are Changing. Here’s What It Means for Your Business
As we head into 2026, UK businesses are facing one of the biggest shifts in electricity pricing in decades.
Rising grid costs, higher standing charges and new government levies mean electricity bills could increase significantly, and for many businesses, the impact will have nothing to do with how much energy they use.
At GEAB, we’re already seeing confusion around what’s coming, who it will affect most, and what businesses can realistically do to prepare. This month’s briefing breaks it down.
What’s Driving the Increase?
There are three key changes businesses need to be aware of:
1. Rising Grid Charges (The “Grid Tax”)
The UK is investing £3.7 billion to upgrade the electricity network to support renewable and low-carbon energy.
As a result, Transmission Network Use of System (TNUoS) charges are expected to rise by around 94% from April 2026.
2. Higher Standing Charges
Instead of being added to your unit rate, many of these costs are built into the standing charge, the fixed daily fee you pay just to stay connected.
That means even low-usage sites could see bills rise.
3. A New Nuclear Levy
From late 2025, a new Nuclear Regulated Asset Base (RAB) levy will be added to bills to fund projects such as Sizewell C. This is based on usage and will increase again in early 2026.
Big Business vs SMEs
One of the biggest issues we’re seeing is a widening fairness gap.
Around 500 of the UK’s most energy-intensive industrial sites will receive up to 90% discounts on network charges to remain competitive internationally.
Small and medium-sized businesses including shops, offices, hospitality venues and multi-site operators will not receive these exemptions and will absorb the full increase.
For SMEs, this means higher fixed costs regardless of usage.
What Large Businesses Should Be Doing Now
If you operate large or energy-intensive sites:
- Check whether you qualify for network charge exemptions — and that they’re being applied correctly
- Review contracted grid capacity (kVA) and reduce unused allowances
- Model 2026 energy costs now to protect future budgets
- Explore on-site generation, storage or demand management strategies
What SMEs Should Be Doing Now
If you’re a small or medium-sized business:
- Don’t assume “fixed” means fixed — many contracts allow pass-through charges
- Pay close attention to your standing charge
- Reduce unused grid capacity to cut fixed costs
- Compare tariff structures, including lower standing charge options
- Seek advice early — waiting reduces your options
The Key Takeaway
Electricity pricing is no longer just about consumption.
From 2026, how your contract is structured could matter as much as how much energy you use — especially for SMEs.
Awareness and preparation now can help avoid unnecessary cost shocks later.
