Sally Phillips, Director of Corporate and Strategic, npower Business Solutions (nBS)
Last year was a significant year for business energy users. The government’s Modern Industrial Strategy put clean energy firmly at the centre of economic growth. With Clean Power 2030 targets fast approaching, the industrial strategy set out how investment in networks and energy infrastructure will accelerate.
But this energy transition will come at a cost. Our 2025 Business Energy Tracker, which tracked the views of more than 130 of the UK’s largest energy users, found strong support for Clean Power 2030 but also growing concern about the network, system and policy costs required to deliver it.
So, as we move through 2026, here are three developments organisations should be preparing for.
Rising non-commodity costs will hit business energy invoices
Analysis from our Optimisation Desk shows that 2026 will be a significant year for industry costs, with several increases expected to start feeding through to invoices from May 2026. Together, these could add around £25 per megawatt hour (MWh) to business energy prices.
The largest increase comes from Transmission Network Use of System (TNUoS) charges, which are set to rise sharply as the first year of the RIIO 3 regulatory period begins. At the end of January 2026, the National Energy System Operator published its final TNUoS rates for the charging year starting in April. While these broadly matched expectations, many businesses will see TNUoS charges increase by more than 60% year-on-year.
Gas network charges published for the first year of RIIO 3 follow a similar pattern. While essentially unchanged from draft rates, they still represent a notable increase compared with current levels.
September 2026 is also expected to be a significant month, as decisions affecting some April 2027 costs are likely to be taken then.
Taken together, 2026 is the year when rising industry costs begin to materially impact business energy invoices as the transition to clean power accelerates.
Support for energy-intensive industries
The Modern Industrial Strategy included two initiatives designed to help energy-intensive industries manage rising non-commodity costs.
The British Industry Supercharger will increase the level of electricity network charge discounts available to eligible energy-intensive industries. Currently set at 60%, this discount is due to rise to 90% from April 2026.
In addition, the British Industrial Competitiveness Scheme aims to extend support to a broader range of businesses. Under current proposals, around 7,000 additional organisations could benefit from reduced charges and levies from 2027. The consultation on how this scheme could work closed in January 2026, with outcomes expected later this year.
While these measures are welcome, they will only apply to a relatively small proportion of businesses. Rising network and system costs will affect organisations of all sizes, which is why continued engagement between government and industry remains essential.
Energy data will become an essential business tool
The Market-wide Half-Hourly Settlement (MHHS) programme reached a major milestone in September 2025, when the systems underpinning the new arrangements went live. The aim is to support a more accurate, efficient and flexible electricity system that is ready for Clean Power 2030.
During 2026, migration will continue for businesses of all sizes. All electricity meters, including traditional meters, will move into new market segments, alongside changes to metering services to reflect the new settlement framework.
While businesses are not required to change their meter as part of MHHS, upgrading from a traditional meter to an automated meter reading (AMR) or smart meter can unlock access to half-hourly data. This level of insight improves understanding of consumption patterns and creates opportunities to enhance energy efficiency.
Organisations that actively engage with MHHS and use its data are likely to see the greatest benefits over time.
Steps businesses can take now
Although businesses cannot control industry-wide cost increases, they can take steps to manage their impact.
Improving understanding of energy data can help identify opportunities to reduce consumption, while online data visualisation tools can support informed investment in energy efficiency measures.
Some organisations may also consider on-site generation. Energy generated behind the meter is not subject to industry costs such as balancing or capacity charges, while also supporting participation in flexibility markets.
Finally, reviewing and reducing network capacity can lower Distribution Use of System (DNUoS) and TNUoS charges.
2026 will bring both opportunity and uncertainty. Short-term cost pressures sit alongside the long-term benefits of a cleaner, more secure energy system. Businesses that prepare early will be best placed to navigate the year ahead.
www.npowerbusinesssolutions.com
This article appeared in the March 2026 issue of Energy Manager magazine. Subscribe here.