Energy Charges & Costs

Network Costs

Key takeaways

Network costs are the charges for transporting energy through the UK’s infrastructure (wires, substations, pipes, and the operational work behind them).

On electricity bills they often appear as items like DUoS and TNUoS, or as part of a bundled unit rate.

They can vary by location, capacity/consumption, and when you use the network.

What are network costs?

Network costs cover the work and infrastructure needed to move energy to your premises.

For electricity, National Grid’s explainer describes charges that recover costs linked to:

  1. the shared transmission network (TNUoS)
  2. balancing the system (BSUoS)
  3. and connection-related costs

NESO also explains that system charges (like TNUoS) are designed to reflect the cost of using the network and can vary by location.

How network costs show up on business bills

All-inclusive contracts

  • Network costs are typically bundled into your unit rate and standing charge.

Pass-through contracts

  • Network costs may appear as separate line items (for example DUoS/TNUoS), and can change over time.

Why network costs vary

Common drivers include:

  • Region (different network areas have different charging structures)
  • Capacity / demand (your agreed capacity and consumption can matter)
  • Timing (some charging structures reflect when you use the network)
  • Metering and settlement (half-hourly vs non half-hourly can change how charges apply)

How to manage network-cost surprises

  1. Confirm whether your quote is all-inclusive or pass-through
  2. If pass-through, ask for the list of included network charge types
  3. If you have half-hourly data, look at whether peak-time usage is driving costs

Sources

  1. National Grid: Electricity network charges explained (TNUoS/B_SUoS/connection concepts and what TNUoS depends on).
  2. NESO: Charges for using Great Britain’s electricity system (why charges vary and what they aim to do).