Non-power charges are the portion of your business energy bill that covers everything except the electricity itself. They fund grid infrastructure, government policies, and renewable energy programmes. For most UK businesses, these charges make up 40–75% of the total bill.

Most suppliers bundle them into a single unit rate, making it impossible to see what you're actually paying for. This guide breaks down each charge type, explains how they're calculated, and shows you what to look for on your next bill.

What are non-power charges

Non-power charges cover everything on your business energy bill except the electricity itself. They fund grid infrastructure, network maintenance, government policy costs, and renewable energy programmes. For most UK businesses, non-power charges make up 40–75% of the total bill.

You might see them called "non-commodity costs," "third party charges," or "pass-through costs." The labels change depending on your supplier, but the underlying charges stay the same.

Here's the thing most suppliers won't tell you: they often bundle all of this into a single unit rate. That makes it impossible to see what you're actually paying for. And when you can't see the breakdown, you can't spot errors, question markups, or compare suppliers properly.

Why your business pays non-power charges

Electricity travels a long way before it reaches your meter. First, it moves through the national transmission network. Then it passes through regional distribution networks. Finally, it arrives at your site. Someone builds, maintains, and operates all of that infrastructure.

On top of the physical grid, the UK government uses energy bills to fund policy goals. Supporting renewable generation. Ensuring backup capacity exists for cold winter evenings. Incentivising carbon reduction. All of this gets passed to every connected business.

Whether you consume 10,000 kWh or 10 million kWh, you contribute to the shared costs. The difference lies in how those costs get calculated and whether your supplier shows you the breakdown.

Types of non-power charges on business energy bills

Distribution Use of System charges

DUoS charges pay your local Distribution Network Operator (a DNO is the company that owns the power lines connecting the national grid to your property) for using the regional electricity network.

The rates vary by region, voltage level, and time of day. A business in Cornwall pays different DUoS rates than one in Newcastle. Peak-time consumption costs more than overnight usage.

Transmission Network Use of System charges

TNUoS charges fund the high-voltage national grid that transports electricity across the country. National Grid ESO manages this network and sets the rates, with total TNUoS revenue increasing 63% in 2026-27.

Your location and your demand during "Triad" periods affect what you pay. Triads are the three half-hours of highest national demand each winter. Businesses that reduce consumption during Triads pay less.

Balancing Services Use of System charges

BSUoS charges cover the cost of keeping supply and demand balanced in real-time. The grid operator constantly adjusts generation and demand to maintain system frequency at 50Hz.

Every unit of electricity you consume includes BSUoS. As more intermittent renewable generation connects to the grid, balancing costs have become more volatile.

Climate Change Levy

The CCL is a government tax on energy supplied to businesses, rising to £0.00801/kWh from April 2026. It exists to encourage energy efficiency and reduce carbon emissions. Some energy-intensive industries qualify for reduced rates through Climate Change Agreements.

Renewables Obligation

The RO funded large-scale renewable electricity projects through guaranteed payments to generators. While closed to new projects since 2017, legacy costs continue until existing contracts expire. You'll see RO charges on every business electricity bill for years to come.

Feed-in Tariff charges

FiT charges supported smaller renewable installations like rooftop solar and small wind turbines. The scheme closed to new applicants in 2019, but existing commitments run for up to 25 years.

Contracts for Difference charges

CfD charges support newer renewable projects by guaranteeing generators a stable "strike price." When wholesale prices fall below the strike price, businesses fund the difference. When wholesale prices exceed it, generators pay back. This mechanism now dominates UK renewable support policy.

Capacity Market charges

Capacity Market charges ensure the UK has enough generation capacity – 43.1 GW secured for 2028/29 – available during peak demand. Generators receive payments for committing to be available when needed, and businesses fund those payments through their bills.

Standing charges

Standing charges are fixed daily fees covering meter maintenance, supplier administration, and basic connection costs. You pay standing charges regardless of how much electricity you consume. A site using zero electricity still receives a bill.

How much of your bill goes to non-power charges

The split varies by business size, location, and consumption profile. Here's a typical breakdown for a medium-sized business:

That last line matters. Supplier margin often hides within inflated pass-through charges, making it invisible unless you see an itemised breakdown. When suppliers bundle everything into one unit rate, you have no way of knowing how much of your bill is profit versus genuine pass-through cost.

How non-power charges are calculated

Different charges use different calculation methods, which explains why your bill looks different from a neighbouring business even if you consume similar amounts.

• Consumption-based charges: Calculated per kWh of electricity used. The more you consume, the more you pay.

• Capacity-based charges: Based on your agreed maximum demand in kVA. You pay for the capacity reserved for your site, whether you use it or not.

• Time-of-use charges: Vary depending on when you consume electricity. Peak periods cost more than overnight or weekend usage.

• Fixed charges: Flat daily or monthly fees regardless of consumption.

Your meter type affects how charges apply. Half-hourly metered businesses (typically those consuming over 100,000 kWh annually) pay time-of-use rates based on actual consumption data. Smaller sites on non-half-hourly meters pay averaged rates that may not reflect their real consumption patterns.

Can you reduce non-power charges

Most non-power charges are regulated. You can't negotiate DUoS rates with your DNO or haggle over the Climate Change Levy. However, you can influence what you pay through operational changes.

• Shift consumption to off-peak periods: DUoS charges vary by time band. Moving energy-intensive processes to overnight or weekend periods reduces costs.

• Reduce demand during Triads: TNUoS charges depend heavily on consumption during the three highest-demand half-hours each winter. Businesses that reduce load during Triad periods pay significantly less.

• Review your agreed capacity: If your site's maximum demand has dropped, you might be paying for capacity you don't use. Reducing your agreed supply capacity lowers capacity-based charges.

• Choose a transparent supplier: Some suppliers mark up pass-through charges. Others show them at cost. The difference compounds across every unit you consume.

One practical step: ask your supplier for an itemised breakdown showing each non-power charge separately. If they can't or won't provide one, that tells you something about how they operate.

How to read non-power charges on your business energy bill

Many suppliers bundle all charges into a single pence-per-kWh rate. This simplifies the bill but hides what you're actually paying for.

To understand your bill, look for:

• Separate line items for each charge type (DUoS, TNUoS, CCL, and so on)

• A clear distinction between pass-through costs and supplier margin

• Half-hourly consumption data showing when you used electricity, not just how much

If your bill shows only a unit rate and total consumption, you have no way to verify whether the charges are correct. You're trusting your supplier's maths without seeing the working.

What transparent business energy billing looks like

Genuine transparency means every charge appears separately, at its true pass-through rate, with no hidden markup. It means access to real-time half-hourly data so you can see exactly when consumption occurred and what it cost.

tem's RED provides this visibility. Bills reflect what actually happened, not what a supplier estimated might happen. Every pass-through charge appears at cost. The margin is visible and separate.

That structural difference changes the relationship between supplier and customer. When you can see everything, there's nowhere for inefficiency to hide.

Let's talk.

FAQs about non-power charges on business energy bills

Are non-power charges the same across all energy suppliers?

The underlying pass-through charges are identical. Your DNO charges the same DUoS rate regardless of who supplies your electricity. However, suppliers add different margins and bundle charges differently, making like-for-like comparison difficult without itemised bills from both.

Do non-power charges apply to renewable energy contracts?

Yes. Non-power charges apply to all business electricity contracts regardless of generation source. A 100% renewable tariff still includes DUoS, TNUoS, CCL, and every other charge. The "green" part refers only to the wholesale electricity, not the delivery infrastructure.

Why do non-power charges increase each year?

Grid upgrades, expanding renewable support schemes, and policy costs drive annual increases. Network operators submit price control proposals to Ofgem, and government sets levy rates through legislation. Individual suppliers don't control the increases, though they do control whether they pass them through at cost or add margin.

What if non-power charges on your bill seem incorrect?

Request an itemised breakdown from your supplier. Compare each charge against published rates from your DNO (available on their website) and National Grid ESO. If discrepancies exist, raise a formal dispute. Suppliers have defined timescales for investigating billing complaints.

Do half-hourly metered businesses pay different non-power charges?

Yes. Half-hourly metered businesses pay time-of-use rates for DUoS and benefit from actual (rather than estimated) consumption data. This typically reduces costs for businesses that can shift consumption to off-peak periods, but increases costs for those with demand concentrated during peak times.