Major changes to the UK’s electricity transmission charging framework will take effect in April 2026, bringing higher fixed charges for businesses across the economy — including controlled-environment horticulture. These increases stem from substantial investment in the national transmission network. According to Ben Ablewhite of Now Then Energy, “All greenhouses will see increases in TNUoS fixed charges from April, but the magnitude of the changes varies dramatically.” Sites with intensive electricity use are expected to feel the greatest impact.

A shifting charging structure
Transmission charges are determined by voltage level and agreed supply capacity. The new banding structure may move many greenhouse sites into higher charging categories. Importantly, the system continues to base charges on maximum permitted capacity rather than actual consumption. As Ben explains, “Seasonality of demand is not currently taken into account in the levying of charges. The assignment of residual charging bands is based on the agreed supply capacity, which is the maximum a site is allowed to use.”

Rising long-term costs and competitiveness pressure
National Grid forecasts suggest transmission charges introduced in 2026 could double by 2030. For lit and electrically intensive production systems, this trend raises concerns about long-term competitiveness. Ben warns: “If greenhouses are to survive – and especially lit production – costs have to be passed on to the consumer via supermarkets, and given that supermarkets have the option of bringing in more produce from abroad, it’s essential that greenhouses are offered access to the same energy cost relief schemes as other energy-intensive industries that the UK Government deems to be at a potential competitive disadvantage.”

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Access to EII and NCC relief schemes
At present, horticulture is excluded from the Energy Intensive Industry (EII) exemption scheme, which also prevents access to the Network Charging Compensation Scheme (NCC), as the latter is tied to EII eligibility. Ben explains: “At the moment, you have to be able to access the EII scheme to have access to NCC, and the official categorisation of greenhouses excludes them from EII.”

He outlines three possible routes to inclusion. First, the government could create a new SIC code specifically for protected horticulture. Second, agriculture as a whole could be granted access to the EII scheme, because the scheme applies a business-level test, only businesses whose electricity costs exceed the threshold would qualify, and many lit greenhouses would likely meet this requirement. Finally, since protected horticulture already participates in the Government’s Climate Change Agreements (CCA) scheme (recognised for covering energy-intensive industries), eligibility for a CCA could be used as an alternative pathway into the EII scheme.

With more electric-powered technologies expected as the sector decarbonises, these relief schemes could become increasingly important. As Ben notes, “At the moment, without subsidies to support new renewable heat infrastructure, the price of electricity versus gas severely harms the business case for technologies such as heat pumps. Access to EII and NCC could really help to redress the balance.”

Mitigation options
Although many upcoming costs are unavoidable, operators can still review their agreed grid capacity to ensure it reflects operational requirements. “It used to be the case that having plenty of grid capacity was seen as an asset,” Ben says, “but it’s an expensive asset nowadays, so it’s been our recommendation for some years that businesses look carefully at how much capacity they really need.” In some cases, a substantial reduction in agreed capacity may justify a review of a site’s charging band. “We’ve done this successfully for a number of the sites we work with,” he adds.

Need for continued advocacy
Electrically intensive sites will face the steepest increases. Ben adds that while greenhouse operators are generally proactive in managing energy costs and adopting new technologies, fixed charges limit how much they can mitigate. He highlights the importance of coordinated sector advocacy: “It’s important that we get behind the likes of the Tomato Growers Association and NFU, talking to Government to push for access to schemes that are already making a big difference to other industries.”

For more information:
Now Then Energy
Ben Ablewhite
+44 (0) 7967215275
Email: [email protected]
www.nowthenenergy.co.uk