TNUoS (Transmission Network Use of System) are charges associated with the maintenance of the electricity network; everyone, domestic or non-domestic, pays this charge as part of the ‘non commodity’ expense of electricity.
TNUoS has historically been heavily weighted against the Triad period (three periods of highest consumption across the whole network throughout winter). If you are a larger consumer able to limit usage during these periods, then you will have benefitted generously and been paying far less than others who don’t have the flexibility.
Ofgem decided they would tackle this discrepancy by changing how the charges will be made to distribute the costs more fairly around the end consumers. Where the charge was either built into the unit rate of a fixed contract or billed separately as a non-commodity on a flex contract; for non-domestic consumers, this charge will now fall within a banding system relevant to your Agreed Supply Capacity (ASC) and usage from April 23 within the standing charges.
The bands are allocated against the ASC for Half Hourly meters – this is measured in kVA, and on a standard meter, it is set on the net annual consumption. This is generally calculated 24 months prior. The band allocation is set until 2026, so if you want to reduce your ASC to in order to drop bands then now would be the best time to investigate this.
Call our team on 024 7669 6512, email on [email protected], or get in touch with your Energy Account Manager for more advice and find out if you could lower your band now ahead of the changes.