What is TNUoS?
TNUoS charges fund the high-voltage power lines that carry electricity across the country from power stations to local distribution networks. These charges cover the costs of building, operating and maintaining the UK’s transmission system.
Energy suppliers pay these charges, but they pass these costs on to consumers. Though costs vary by region, these charges generally make up a small percentage of your electricity bill.
Are TNUoS Charges Increasing?
A recent five-year forecast confirms that TNUoS charges are expected to rise sharply. The increased forecast is due to multiple factors, including upgrades needed to the transmission network coupled with the country’s journey to net zero. This means the TNUoS charges will need to meet the increased level of funding needed for the transmission network.
These forecasts are estimates and actual costs will be confirmed year on year. The draft TNUoS charges are published in November and the final charges published January, to take effect 1 April for the next 12 months.
How Do Customers Pay TNUoS Charges?
Suppliers pay the TNUoS charges on behalf of customers and pass through these charges within customer supply bills. Dependent on the contract type – the TNUoS charge might be included within your supply unit rate.
Alternatively, you might be on what is known as a “pass-through” contract, which means non-commodity charges (such as TNUoS), are listed separately on your energy bill. Where TNUoS is listed separately, the supplier will likely automatically pass along any TNUoS increases.
What is Happening to Prices Now?
Suppliers may take different approaches - they may increase prices for new contracts agreed going forward or they may increase prices for all customers (regardless of when their fixed-term contract was agreed).
The approach taken depends upon the individual supplier’s terms and conditions. It’s worth noting that even though the increases are currently forecasted and not confirmed, some suppliers have begun to pass through those increases to customers.
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