Standing charges are rising – here’s what you need to know

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Electricity costs continue to increase, and with major updates to non-commodity charges underway, many organisations will soon see higher standing charges on their bills.

What are standing charges?
They’re the fees you pay simply for being connected to the electricity grid. These charges fund the operation, maintenance and upgrade of the UK’s energy networks and they now make up around 62% of a typical business electricity bill.

Why are they increasing?
The UK is modernising its electricity system to support more renewables, increased electrification and improved grid resilience.
Ofgem is restructuring how network costs are recovered, with reforms already rolling out from October 2025 and more changes coming in early 2026.

As a result, standing charges are expected to rise sharply over the next six months.

Free webinar: What this means for your business
NFU Energy is hosting a session to explain how NFU is lobbying government, break down what these changes are, what to expect and how they could impact your energy costs.


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