Your energy invoice includes a number of different charges, and this guide explains what each one means so you can understand exactly what each are for.
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Capacity charges | Capacity charges are fees based on the maximum amount of electricity your site can use from the network at any one time - measured in kilovolt-amperes (kVA). This limit is agreed with your Distribution Network Operator (DNO). The charge reflects the cost of the network maintaining that level of capacity availability for the site, even when it isn't being fully used.
If your site exceeds its agreed capacity, separate excess capacity charges may also apply (see Excess Capacity). |
Climate Change Levy (CCL) | The Climate Change Levy is a government environmental tax on energy used by businesses. Its purpose is to encourage energy efficiency and reduce carbon emissions. Most businesses pay this charge. Some - charities and some larger, energy-intensive businesses with special climate change agreements - are exempt.
The amount you can get charged can vary based on your site’s consumption and the government rate set at the time. The government sets the rate for every financial year - the rates were frozen from April 2021 to March 2026. |
Day rate / Night rate | Your consumption is charged at different rates depending on when you use electricity. A higher "day rate" applies during peak hours (07:00 - 00:00) and a lower "night rate" during off-peak hours (00:00 - 07:00). Both include the cost of power, as well as some industry charges, including electricity distribution, keeping the transmission grid balanced, and government energy initiatives.
Your monthly bill reflects the mix of when you use electricity. Your usage during the day versus night hours. |
Excess capacity | If your site uses more energy in any half-hour period than your agreed supply capacity, an excess capacity charge applies. It reflects the additional strain on the network beyond what you're contracted for.
This amount will depend on how much additional energy beyond your agreed capacity level is used and is based on rates set by the local Distribution Network Operator (DNO), which are reviewed annually.
Keeping your agreed capacity at the right level - or managing demand to stay within it - can reduce or remove this charge. |
Meter charges (standard) | A charge covering the ongoing work of the MOP (meter operator), DC (data collector), DA (data aggregator), and MAP (meter asset provider) to cover things like meter maintenance, managing data flows, and meter rental.
Rates are set by the appointed MOP, DC, DA, and MAP and can vary based on meter type, voltage level and rental agreements.
If you have direct contracts with your own MOP, DC and DA, or if your meter isn't rented, you may be exempt from some or all of this charge. |
Meter charges (site visit) | A one-off charge that applies when a meter technician visits your site in person. The purpose of the visit may include, for example, investigating a meter fault, carrying out a physical inspection, exchanging a meter, or collecting a reading. Unlike standard meter charges (which cover ongoing services), this only applies when a physical visit is needed.
If you have direct contracts with your own MOP and DC, you may be exempt from some or all of this charge. |
Nuclear RAB (Regulated Asset Base) Levy | The Nuclear RAB levy is a government-mandated charge introduced in December 2025. It's designed to help fund the construction of new nuclear power stations, starting with Sizewell C.
The amount varies based on your contract type and site’s consumption. For some customers it appears as a separate charge on their invoice; for others it’s included within the day and night rates. Rates are set by the Low Carbon Contracts Company (LCCC) and are updated quarterly. |
Reactive power | Reactive Power is the energy your site draws from the grid but doesn't actually use. If your site wastes a lot of energy this way, it puts extra strain on the network - and this charge covers the cost of that. The rates are set by the local Distribution Network Operator (DNO). |
Standing Charges | The standing charge primarily covers distribution-related costs for the maintenance and operation of local power lines and cables that deliver electricity to businesses and homes.
Local Distribution Network Operators (DNOs) set distribution charges annually - the primary factor that informs the standing charge pricing. |
TNUoS (Transmission Network Use of System) Residual Banded Charges | TNUoS charges help pay for maintenance and upgrades to the UK’s high-voltage transmission network - the pylons and cables that move power from generators to local networks across the UK.
Rates are based on your site’s TNUoS tariff band or TCR (Targeted Charging Review) band, which is determined by your site’s maximum demand requirements. Rates are set annually by NESO (National Energy System Operator), based on their budget set by Ofgem. |
Line Loss Factor Class (LLFC) | A site’s LLFC is a classification assigned by your Distribution Network Operator (DNO) based on how much energy is lost transporting electricity from the network to your meter. Your LLFC informs your site’s distribution charges.
LLFCs can change in response to network or industry regulatory changes. |