From April 2026, some businesses may see changes to their electricity bills due to an industry-wide update approved by Ofgem.
At TST, we manage business energy contracts for our clients in partnership with Fidelity Energy, so we wanted to explain clearly what’s happening — and what it might mean for you.
What’s changing?
In December 2025, Ofgem approved increased investment into the UK’s electricity infrastructure.
In simple terms:
A large proportion of electricity — particularly wind power — is generated in the north of the UK (especially Scotland), while demand is highest in the south. To ensure electricity can be transported safely and reliably across the country, the national grid requires ongoing upgrades and expansion.
That means investment in:
- Upgrading ageing infrastructure
- Building and maintaining substations and power lines
- Expanding capacity to support the UK’s transition to renewable energy
These upgrades are funded through what are known as non-commodity charges — specifically transmission charges (the cost of transporting electricity across the national grid).
How much are these charges increasing?
Transmission charges typically account for around 5% of your total electricity bill.
That specific transmission element is increasing by an average of 62%.
However — and this is important — this does not mean your overall bill will increase by 62%.
Where suppliers apply the change, the average overall bill increase is expected to be around 2–3%.
Will this affect all businesses?
No.
- Not all suppliers are passing on the increase
- Not all existing contracts will be affected
- It depends on your supplier’s criteria
- It depends on your contract type and when it was signed
If your contract is impacted, your supplier must provide at least 30 days’ notice before making any changes.
Can you opt out?
Unfortunately, no.
When you buy electricity, only part of your bill is the wholesale energy cost. The remainder is made up of regulated third-party costs (non-commodity charges), which are set by Government, Ofgem, and the energy networks — not by individual suppliers.
These charges apply to every meter in the UK.
What should you do?
In many cases, nothing — unless your supplier contacts you.
As billing sits directly between you and your energy supplier, TST is not automatically notified of changes to individual contracts.
If you receive communication from your supplier about your rates changing:
- Forward it to us
- We’ll review it
- We’ll confirm whether it looks correct
- We’ll advise you on your options
Even a 2–3% increase can have a noticeable impact depending on your energy usage — so it’s always worth having a second pair of eyes on it.
Key Takeaways
- From 1 April 2026, some electricity transmission charges are increasing
- Existing contracts may be impacted
- Suppliers must provide 30 days’ notice of any change
- The average overall bill increase (where applied) is expected to be 2–3%
- Not all customers will be affected
If you have any questions, or simply want us to sense-check your contract, just get in touch.
We’re here to make business energy straightforward.
