Transmission Network Use of System (TNUoS) charges are fees levied to recover the cost of building, maintaining and operating Great Britain’s electricity transmission network.
TNUoS charges ensure that the costs of the transmission system are paid for by those who use it, with larger energy consumers paying the lion's share of the costs.
Who pays TNUoS charges?
TNUoS charges apply to both electricity generators and electricity users. For most businesses the charge is recovered through their electricity supplier, with TNUoS costs either forming part of the
Standing Charge, or being a separate line item.
How do TNUoS charges work in practice?
The TNUoS charge is a per day amount -- similar to the normal standing charge -- set by the relevant
Distribution Network Operator (DNO). The daily rate will vary depending on what
TCR band the meter is in, with larger users normally classified as being in a higher TCR band and paying more. However, if you believe your meter has been incorrectly classified and is in the wrong TCR band, it can be reviewed by contacting the DNO.
How much is TNUoS (and when are charges set)?
TNUoS demand charges are set annually and published ahead of each charging year, which runs from 1 April to 31 March.
Unlike policy costs, TNUoS is not charged in p/kWh. Instead, it is levied as a p/day. This can add up to several tens of thousands of pounds per year for high usage meters.
With significant investment being made to upgrade the transmission network to accommodate renewable generation, it is likely that TNUoS costs will continue to rise in the coming years, perpetually accounting for a larger proportion of electricity bills.
Why TNUoS matters for businesses
For high-consumption and flexible sites, TNUoS represents a growing expenditure that is difficult to manage. Some businesses can get relief from the rising TNUoS costs from the
Network Charging Compensation mechanism, introduced last year. However, for many businesses, the best they can do is to review that they are in the correct TCR band and are being invoiced correctly by their supplier.
If you would like to ensure that you are in the correct TCR band and that your TNUoS charges are being invoiced correctly. Contact us today and we can review your recent invoices to make sure you aren't paying more than necessary.
