How Third Party charges are affecting UK energy bills
November 2025
Updated on 1 November 2025 by:
Ralph Smith, Senior Costing Manager
In recent months, Third Party charges (also referred to as Non-Commodity or Non-Energy charges) have been a red hot topic across the energy industry, with increases to existing charges as well as the introduction of new charges expected to affect UK energy bills soon.
Energy charges breakdown
Historically, Third Party charges were a relatively minor player in the make-up of a business's energy bill, but in a rapidly changing energy ecosystem, Third Party charges are undergoing an unprecedented evolution fuelled by regulatory change and the drive to Net Zero. And as such, it is more important than ever for businesses to understand these charges and how they can help manage them.
This report explains what Third Party charges are, why they're increasing, and what steps your business can take to stay informed and in control.
Evolving Third Party charges
Predicting how Third Party charges will look in the future has never been an easy job, but it is likely to be harder than ever over the next 5-10 years.
From a network charges perspective, the RIIO-3 price controls kick in April 2026 (Transmission) and April 2028 (Distribution), which have and will create significant uncertainty as to how the costs behind these charges will change.
Electricity Third Party charges forecasts
And for policy costs (e.g. low carbon generation subsidies, industry support subsidies), uncertainty around the arrival of new charges and the drop-off in outgoing charges is making forecasting the charges increasingly difficult.
One thing is certain - Third Party charges are increasing on energy bills, and they will do so for some time as Britain makes the slow and expensive transition to Net Zero.
How can businesses take control of their energy bills
Whilst we cannot stop Third Party charges increasing, there are certain options that businesses can look into that may be able to reduce their exposure to them.
- Check for exemptions
In recent years the government has set up a number of energy bill support schemes that enable certain eligible industry types to be exempt from all or some Third Party charges.
Including
- Energy Intensive Industries (EIIs) Levy - EII consumers can receive exemptions on renewable levy costs or some network costs.
- Britain's Industrial Strategy - More than 7,000 British businesses will have electricity bills cut by up to 25% from 2027.
- Choose the right energy strategy for your business
Every business is unique in how it uses energy and what it needs from its supply contract. Whether you’re looking for greater budget certainty, price transparency or cost-saving options, we can offer a range of products to meet your goals.
As Third Party charges become a larger and more complex part of UK energy bills, staying informed and proactive is essential. By understanding these costs and exploring tailored supply options, businesses can manage their energy spend more effectively.
- Choose pass-through products - Only pay Third Party charges when they’re known - avoid risk premiums and stay in control of your costs.
- Time of use prices – If you’re able to shift consumption away from expensive peak periods (e.g. 4-7pm weekdays), you can significantly reduce your overall energy spend.
- PeakSave for Business – Businesses with a smart meter can sign up to PeakSave events, where they can enjoy reduced energy costs for specific dates and times. If you’d like to take part in future PeakSave for Business events but don’t yet have a smart meter, request an upgrade today.
Discover what’s available for your business today and find the energy strategy that works for you.
In this article
- Energy charges breakdown
- Evolving Third Party charges
- How can businesses take control of their energy bills
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