Understanding non‑commodity costs on your business electricity bill
Non-commodity costs make up around 60% of your business electricity bill, so understanding them can help your business plan and budget with confidence.
What are commodity and non-commodity costs?
Your bill is made up of the energy you use as well as the charges that keep the UK energy system running.
Commodity costs
The cost of the gas or electricity your business uses.
These costs are fixed when you agree a contract with us.
Non‑commodity costs
The cost of running, maintaining and upgrading the energy network.
These costs are set by government, industry and Ofgem.
Non-commodity costs and how they affect your bill
Some customers may see charges added to their bill due to these non-commodity costs.
Transmission Network Use of System (TNUoS)
Transmission Network Operators run the UK’s high-voltage electricity system - essentially the motorways of the electricity grid.
Nuclear Regulated Asset Base (nRAB)
The Nuclear RAB Levy helps fund new nuclear power stations. Supporting more stable, low‑carbon energy for the UK.
How these charges will appear on your business electricity bill?
You will see the non-commodity costs in line items on your business electricity bill. This will either appear in a section called 'Additional charges' or 'Electricity charges'.
1. Transmission Network Use of System (TNUoS)
Will appear as TNUoS RIIO-3 Charge in your bill.
2. Nuclear Regulated Asset Base (RAB)
Will appear as Nuclear RAB Levy in your bill.
Both your TNUoS and nRAB charges are calculated monthly and added to your next bill, so they may not align exactly with other charges.
Helping you with your business energy bills
While wholesale energy prices and government levies may be out of our control, there are things you can do to manage your bills.
- Check if your business is an Energy Intensive Industry (EII). If you are, your business doesn't have to pay certain Network costs. You'll need to apply for exemption
- Do you already have a Smart meter installed? This means you only pay for the energy you’re using
- Check our simple business energy saving tips
And if you’re ever finding it difficult to pay your bills, we’re here to help and support you.
Next steps in understanding your business energy bill
Frequently asked questions about non-commodity costs
What are non‑commodity costs?
Non‑commodity costs are charges that cover the cost of running, maintaining and upgrading the UK’s energy networks. They sit alongside the cost of the energy you use.
Why do non‑commodity costs make up so much of my bill?
Over time, more of the investment is needed to keep the UK’s energy system resilient and low‑carbon. That means non‑commodity costs can account for more than 60% of a typical business energy bill.
Why are non-commodity costs rising?
Non‑commodity costs are set by Ofgem and apply to all suppliers. Prices are affected by frequent changes in national energy demand, new government schemes, regulatory changes and the investment needed to modernise the network.
Can I reduce how much I pay in non‑commodity costs?
You can’t remove the charges, but you can influence them. Some costs, like Distribution Use of System (DUoS) charges, vary depending on when you use energy. See more in our Guide to non-commodity costs. Shifting some usage to off‑peak times could help lower your overall bill. This includes our time of use offers like PeakSave for Business.
What will I see on my business energy bill?
You will see two line items on your bill.
1. Transmission Network Use of System (TNUoS)
Will appear as ‘TNUoS RIIO-3 Charge’ in your bill.
2. Nuclear Regulated Asset Base (RAB)
Will appear as 'Nuclear RAB Levy’ in your bill.
Will you change my Direct Debit payment?
If you pay by variable Direct Debit, you'll pay for what you use when you use it as shown on your bill.
If you pay by fixed Direct Debit we regularly review your monthly payments to ensure they match your energy usage.
If you pay for your bills each month, your bill will show the amount you need to pay.
You can always log onto your online account to view your bills at any time. You will also be able to see your Direct Debit settings.
Are non‑commodity costs the same for every supplier?
Yes. All suppliers follow the same Ofgem‑regulated framework. While unit rates may differ between contracts, the structure of non‑commodity costs is consistent.
What’s the difference between commodity and non‑commodity costs?
Commodity costs are what you pay for the actual gas or electricity you use. Non‑commodity costs cover the wider system that delivers that energy to you — from national infrastructure to environmental schemes.
Will non‑commodity costs keep rising?
Some charges are expected to increase over the next decade due to new low‑carbon projects, inflation and major infrastructure upgrades. Others, like the Renewables Obligation, will gradually fall as older generators leave the scheme.
How can understanding non‑commodity costs help my business?
Knowing what drives your bill helps you forecast more accurately, choose the right energy plan and make informed decisions about when and how your business uses energy.
Where can I learn more about Non-commodity costs?
You can download our full guide to non‑commodity costs for a detailed breakdown of each charge and what they mean for your business.
