UK energy bill charges, explained

Locational transmission demand charge for half-hourly metered sites, set per TNUoS zone in pounds per kW of average demand across the three winter peak half-hours (the Triads, November to February). Since the Targeted Charging Review took effect in April 2023 the larger residual element of TNUoS is recovered through fixed daily TDR bands instead, so this locational element is now the smaller part of the transmission charge for most sites.

Volumetric transmission demand charge for non-half-hourly metered sites, applied in pence per kWh to consumption in the 16:00 to 19:00 evening window and set per TNUoS zone by NESO. It is the NHH counterpart of the half-hourly Triad charge, recovered across units rather than measured peak demand.

Since April 2023 the transmission demand residual is recovered through fixed daily charges banded by connection voltage and agreed capacity (or by annual consumption for LV sites without an agreed capacity), set nationally by NESO under Ofgem's Targeted Charging Review. Your band is fixed for the charging year and appears on the bill as a pounds-per-day TNUoS or TDR line, regardless of how much you use or when.

Subsidy for Northern Scotland where distribution costs are higher due to remote, low-density population. All GB consumers pay a tiny amount to keep Scottish Highland electricity affordable.

Charge for gas entering the National Transmission System at entry points (terminals, interconnectors, LNG). A volumetric pass-through to all gas consumers.

Charge for gas leaving the NTS at exit points to enter local distribution networks. Varies by exit zone in theory, but broker-level calcs use a national average.

Volumetric throughput charge on all gas flowing through the NTS. A small per-kWh charge that funds ongoing NTS operating costs.

Peak-time distribution charge for using the local network, applied per kWh in the Red time band. For most DNOs the Red band is weekday late afternoon to early evening (typically around 16:00 to 19:00), the most expensive time to take power; the exact window and rate are set in each DNO's charging statement.

Shoulder-time distribution charge, applied per kWh in the Amber band: typically weekday daytime and evening hours outside the Red window. Cheaper than Red and dearer than Green; the exact hours and rate are set in each DNO's charging statement.

Off-peak distribution charge, applied per kWh in the Green band: typically overnight on weekdays and all day at weekends. The cheapest time to use power on the local network; the exact hours and rate are set in each DNO's charging statement.

Distribution charge for consumption in the Super Red period, which applies to extra-high-voltage connected sites only. It is an extreme-peak surcharge above the Red band and does not apply to LV or HV supplies. Set in each DNO's EHV charging statement.

Fixed daily standing charge for having a connection to the distribution network. Paid regardless of how much electricity you use.

Charge based on your agreed supply capacity (kVA). Only applies to half-hourly metered sites. If you exceed your agreed capacity, you pay an excess rate.

Penalty rate charged per kVA per day on any demand above the site's agreed supply capacity in a month. It is typically higher than the standard capacity rate, so a site that regularly breaches its agreed kVA usually saves money by formally increasing the capacity instead.

Charge per kVArh of reactive power drawn beyond the allowance implied by the DNO's power-factor threshold (commonly 0.95). Sites with large motor loads or old lighting often pay it without realising; power-factor correction equipment usually removes it within a year or two.

Since April 2022 each DNO recovers its distribution residual through fixed daily charges banded by connection voltage and agreed capacity (or annual consumption for LV sites without one), under Ofgem's Targeted Charging Review. The band is fixed for the charging year and the rate differs by DNO region, so there is no single national figure: use the NCC calculator with your MPAN or postcode for your region's rates.

The largest gas distribution charge. Volumetric rate for gas flowing through your Local Distribution Zone. Varies significantly by LDZ region, e.g. Scotland is typically cheaper than London. Set by your regional GDN under Ofgem RIIO-GD2.

Charge based on your peak daily gas demand, not annual consumption. Calculated as p/kWh/day × peak day demand. Sites with peaky usage (low load factor) pay more per kWh than sites with flat, even consumption. This is why load factor matters for gas NCC costs.

Fixed daily standing charge per gas meter point. Paid regardless of consumption. When expressed as p/kWh, smaller sites pay much more per unit than larger sites because the same fixed cost is spread over fewer kWh.

Gas lost in the distribution network through leakage, own-use, and unaccounted-for gas (UIG). Charged as a percentage uplift on throughput by GDNs. The cost to you depends on the wholesale gas price, shrinkage % × wholesale p/kWh = your cost in p/kWh.

Pays for keeping the electricity system balanced second-by-second, matching generation to demand in real time. Covers ancillary services, constraint payments and system reserves. Fixed tariff since April 2023.

The largest single NCC after DUoS. Funds the UK’s oldest large-scale renewable energy scheme via Renewables Obligation Certificates (ROCs). RPI-indexed buyout price.

Support scheme for small-scale renewable generation (rooftop solar, small wind). Scheme closed to new applicants in 2019 but existing 20-year contracts continue.

The government’s main mechanism for building new wind farms and solar. Generators get a guaranteed strike price; consumers pay the gap vs wholesale prices. Quarterly levy.

Small admin charge covering LCCC’s costs of running the CfD scheme. Tiny compared to the main Supplier Obligation.

Pays power stations and demand-side response to be available during winter peaks. Ensures the lights stay on during cold snaps. Based on T-4/T-1 auction clearing prices.

Small admin levy covering EMR Settlement’s costs of running Capacity Market auctions and settlements.

Levy on electricity suppliers from April 2025 that funds the Network Charging Compensation Scheme, under which eligible energy-intensive industries (steel, chemicals, glass, paper and similar) are compensated for a share of their network charges (TNUoS, DUoS and BSUoS): 60% for claim months from April 2024, rising to 90% from April 2026 (which reaches supplier invoices from April 2027, because the levy is billed twelve months in arrears). Suppliers pass the levy through to all other customers as a small per-kWh charge. It is administered by Elexon on behalf of DESNZ.

Small admin charge for running the EII Network Charging Compensation Scheme.

New levy funding the construction of Sizewell C nuclear power station in Suffolk. Consumers pay during construction so the project can be financed more cheaply. Started November 2025.

Small admin charge covering LCCC’s costs of running the Nuclear RAB revenue collection scheme.

Government tax on energy used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Energy-intensive industries can claim reduced rates via CCAs.

Government tax on gas used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Since April 2024, gas CCL has been equalised with electricity CCL. HMRC publishes rates 2+ years ahead.

Levy on licensed gas suppliers that funds the Green Gas Support Scheme, which pays biomethane producers to inject renewable gas into the grid. It is set by Ofgem as a fixed pence-per-meter-point-per-day rate for each scheme year from 1 April, so the cost per kWh is lower for larger sites because the same fixed amount is spread over more units.

Monthly fixed charge per meter point for electricity settlement services. Elexon runs the Balancing and Settlement Code.

Per-kWh charge for Elexon settlement services. Very small, covers the variable cost of processing meter data.

Recovers a supplier's share of the electricity imbalance (cash-out) settlement run by Elexon under the Balancing and Settlement Code. It is not a fixed published tariff: imbalance prices are calculated for every half hour from the balancing actions NESO takes, so any pence-per-kWh figure on a bill is the supplier's own allowance for the cost, not a rate set by Elexon.

Residual Cashflow Reallocation Cashflow: for every half hour Elexon sums the energy imbalance charges collected and redistributes (or collects) the residual across trading parties in proportion to their metered energy. It can be a credit or a debit and is not a published tariff; the small pence-per-kWh figure some suppliers show is their own allowance.

Pays for the Data Communications Company’s smart meter communications network, the system that sends your meter readings to your supplier wirelessly.

Levy funding the national advertising campaign encouraging consumers to get smart meters installed.

Smart meter communications levy for gas meters. Covers the Data Communications Company's costs of connecting your gas smart meter to the wireless network. Rising as more gas smart meters are installed.

Gas share of the Smart Energy GB consumer awareness campaign levy. Declining as the smart meter rollout matures and campaign winds down.