How does the Autumn Budget affect non-domestic energy bills?

One of the major headlines from the Autumn Budget was a £150 reduction in average household energy bills from April 2026. This saving comes from removing certain green levies (such as ECO) from domestic bills and shifting parts of the Renewables Obligation to general taxation.

But for non-domestic consumers, the picture looks very different. The measures designed to cut household bills do not apply to non-domestic energy customers, meaning most organisations will continue to face rising costs.

Below, we break down what the Budget means for your organisation’s energy bills.

What has the Budget changed for businesses?

The Government has enhanced support under the British Industry Supercharger by increasing the discount on network charges (TNUoS and DUoS) for eligible energy-intensive industries (EII) from 60% to 90%, effective April 2026.

However, the additional 30% relief for these qualifying businesses is expected to be offset by higher non commodity charges for non-EII customers. As a result, many organisations outside the EII scheme may unfortunately face increased energy costs.

A second long-term proposal is the British Industrial Competitiveness Scheme (BICS) which is planned for 2027. It is expected to reduce electricity prices for eligible manufacturing and high-usage businesses by around £35–£40/MWh (or 3.5 -4.5p/kWh).

If your organisation operates in sectors such as chemicals, metals, glass, paper, or other heavy industries, these schemes could materially lower your costs.

Network and transmission costs – such as TNUoS (Transmission) and DUoS (Distribution)

The domestic levies being removed or reallocated only apply to households; commercial customers therefore won’t receive this saving and their underlying bill structure remains unchanged.

While wholesale energy prices fluctuate, the non-commodity elements of business energy bills – including network charges, policy costs, and system balancing fees – continue to rise. These include:

Government obligations – such as taxes and levies (e.g. Renewables Obligation, EII, Contracts for difference)
TNUoS (Transmission charges)
DUoS (Distribution charges)
BSUoS (Balancing service charges)
New policy driven costs – such as the Nuclear Regulated Asset Base (RAB) levy, which helps fund new nuclear generation
Costs linked to major system reforms, including Market-wide Half-Hourly Settlement

These increasing charges are essential for funding grid upgrades and supporting the transition to net zero, but they continue to place upwards pressure on business energy bills.

How can you reduce the impact?

Monitor your energy consumption

The simplest way to offset rising non-commodity charges is to lower your usage.

With the Christmas break approaching, implementing a shutdown checklist will minimise waste while your site is closed. Consider heating, ventilation, refrigeration and any IT equipment left on standby.

Explore on-site renewable energy

Reducing reliance on grid electricity protects you against network and policy charges.

If capital investment has been a barrier, explore funding mechanisms such as Power Purchase Agreements (PPAs), which allow you to install renewable technology (e.g. solar) with no up-front cost and immediate savings.

Look beyond the p/kWh when comparing contracts

A low unit rate doesn’t tell the whole story. Make sure you understand exactly what you are paying for and what is included in your contract – many businesses assume all costs are fixed, when in fact some may be passed through.

If your time and resources are limited, consider how much effort goes into chasing suppliers when something goes wrong, checking that your bill reflects your usage and unit rates, and whether you have access to tools for consumption analysis and monitoring.

A trusted energy partner can save you significant internal time on administration, query resolution, procurement, and compliance, all of which have value beyond the headline price.