From 1 April, UK businesses will feel energy costs rise

Updated: April 9, 2026

From 1st April 2026, a major part of your electricity standing charge is changing.

The Transmission Network Use of System charge (TNUoS- the levy that helps fund the UK’s transmission network) increases by an average of 62% from 1 April.

For many mid-sized manufacturers, that could mean an extra £40,000–£80,000 added to this year’s electricity bill, before you’ve even used more energy.

And the important point is this:

This increase won’t hit every business equally.

Your actual exposure depends on:

  • Your postcode / grid region
  • Your voltage connection
  • Whether your contract treats these charges as fixed or pass-through

Some companies will see only a moderate increase.

Others will see a jump that’s large enough to impact budgets immediately.

At the same time, wholesale prices are rising again

Alongside these structural cost increases, wholesale markets have also shifted sharply in recent weeks.

Since late February, electricity prices have risen around 10–30%, while gas has moved faster, with forecasts suggesting increases of 25–80%, depending on contract type and sector exposure.

Cornwall Insight is now warning that some businesses could see energy cost hikes of up to 80% and unfortunately, April is when many companies are forced back into the market.

April is renewal season, and suppliers know it

This is what makes the timing particularly difficult.

April is one of the busiest months of the year for commercial contract renewals, suppliers are adjusting prices more frequently.

If you’re renewing in the coming weeks, you’re not just dealing with higher market rates  you’re also dealing with a market that’s moving daily.

There’s no price cap for businesses

Domestic customers have a degree of protection through the price cap.

Commercial energy users don’t.

When the market rises, businesses feel it instantly either through renewal pricing or through pass-through contract structures that push additional costs straight onto the bill.

Two questions worth asking this week

If you haven’t already, I’d strongly recommend asking your FD or energy manager the following before the week is out:

1. Are we on an “all-in fixed” contract or are non-commodity charges passed through? Because if they’re pass-through, tomorrow’s TNUoS increase will feed straight into your cost base.

2. When does our current contract end, and what’s our exposure between now and renewal? If your renewal is close, understanding your position now gives you options waiting until the final weeks usually removes them.

The biggest issue for most businesses is that energy is becoming harder to forecast, harder to control, and harder to budget for.

For help navigating your energy contracts, get in touch with out team: Get in touch – Green Energy Advice Bureau