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Reduce Avoidable Electricity Network Charges at High‑Demand Sites

Many large electricity users are paying hundreds of thousands of pounds per year more than necessary in electricity network charges. These costs are not driven by total energy consumption, but by peak demand from the grid  – and in many cases, they can be significantly reduced.

We help high‑energy sites identify and unlock savings by reducing peak demand, lowering network charging bands, and optimising the use of onsite generation and battery storage.

If you operate a high-energy site and want to understand whether network charges can be reduced, get in touch to arrange your free initial assessment.
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Home » Consultancy Services » Reduce Electricity Network Charges for High Energy Users

Who This Is Relevant For

This opportunity is most relevant for medium to large electricity users, typically those that consume 2,000 MWh/year or more and have a  peak electrical demand above 1–2 MW, operating energy‑intensive assets such as crushers, pumps, motors, refrigeration or batch processes.

Typical sectors include: Quarries and mineral processing – Manufacturing and processing plants – Water and wastewater pumping – Food & drink production – Large industrial or logistics sites.

Why Network Charges Are So High

Electricity network charges are made up of: Transmission Network Use of System (TNUoS) charges, which fund the national high‑voltage transmission system and Distribution Use of System (DUoS) charges, which fund regional and local distribution networks.

For large sites, these charges are strongly driven by peak import capacity – effectively the maximum power your site draws from the grid during peak periods.

As peak demand increases, sites move into higher connection bands (for example from HV3 to HV4), which can cause step changes in annual costs.

Illustrative Example: Reducing a Connection Band

Consider a UK industrial site with a 4 MW grid import capacity and a high‑voltage (HV4) connection band.

In 2026/27 price terms, this results in network charges of approximately £415,000 per year.

If the same site were able to reduce its required import capacity to 1.8 MVA, moving down to the HV3 band, annual network charges would fall to around £162,000 per year – a saving of £253,000 per year.

Based on current charge forecasts, that same change is expected to be worth around £364,000 per year by 2030/31!

This is an illustrative example. Actual savings depend on site demand profiles, location and operational flexibility.

How Peak Demand Can Be Reduced

Electricity network charges are driven by a site’s maximum half‑hourly import from the grid. The aim is therefore not to avoid national peak periods, but to reduce or cap the site’s own peak demand.

Peak demand – and therefore network charges – can usually be reduced through a combination of the following:

1. Operational Demand Optimisation

Reducing site peak demand by avoiding the simultaneous operation of energy‑intensive equipment. This can include staggering the start‑up of large motors or plant, sequencing batch processes or rescheduling non‑critical loads.

These changes are only effective where they lower the site’s absolute peak demand, rather than simply moving it to a different time of day.

2. Battery Energy Storage Systems (BESS)

Using batteries that charge during lower‑demand periods and discharge during site peak periods to cap maximum grid import and reduce required connection capacity.

BESS is often the most reliable way to guarantee peak reduction where operational flexibility is limited.

3. Onsite Renewable Generation

Installing solar PV or a wind turbine to supply site demand directly and support battery charging to reduce reliance on grid imports during site peak periods.

These measures can be deployed individually or in combination, depending on site characteristics.

What This Can Unlock: Example Project Economics

Using the same illustrative site from above, but now with a 2 MWh battery energy storage system combined with 2 MW of solar PV.

This could deliver total first‑year benefits of approximately £458,000 per year, made up of reduced DUoS and TNUoS charges, lower imported electricity costs and revenue from exporting excess electricity.

With an indicative capital cost of £2.4 million, this equates to a simple payback of around 5 years. Projects of this type typically deliver 4–7 year paybacks and 20+ years of operational life – long‑term, inflation‑linked cost savings. And Carbon savings of hundreds of tonnes per year.

How We Help

We support clients through the full journey:

 

  1. Free Initial Screening
    A high‑level assessment to identify whether your site is likely overpaying network charges, and the scale of the opportunity.
  2. Detailed Site‑Specific Modelling
    Half‑hourly demand analysis, technology sizing, financial modelling and sensitivity analysis.
  3. Project Development & Delivery Support
    Technical design, investment cases, and support through procurement or delivery stages.

Just to answer some common questions...

Frequently Asked Questions

Is reducing peak demand about avoiding national peak periods?

No. Electricity network charges are driven by a site’s maximum half-hourly demand from the grid, not by alignment with national peak periods. Reducing your site’s own peak demand is what lowers DUoS and TNUoS exposure.

Can operational changes alone reduce DUoS and TNUoS charges?

Operational changes can reduce network charges only if they lower the site’s absolute peak demand, for example by avoiding the simultaneous operation of large electrical loads. If the same peak demand still occurs, simply moving it to a different time of day will not reduce charging bands.

Do battery energy storage systems always reduce network charges?

Battery energy storage systems can reliably reduce network charges when they are correctly sized and operated to cap site peak demand. They are particularly effective where operational flexibility is limited or where peaks are driven by unavoidable processes.

What size of site benefits most from peak demand reduction?

Sites with peak electrical demand above 1–2 MW typically see the greatest benefit, particularly where reducing peak demand allows the site to move into a lower network charging band.

Next Step

If you operate a high-energy site and want to understand whether network charges can be reduced, get in touch to arrange your free initial assessment.

What We'll Need

To carry out a free initial assessment, provide as much of the following as you can – we can fill gaps using typical values:

  • Current grid connection capacity (MW or MVA)
  • Peak electricity demand (if known)
  • Technologies of interest (BESS, solar, wind)
  • Target payback period (years)
  • Maximum capital budget (£)

You will receive a 1–2 page summary report outlining potential financial savings, carbon reductions and next steps.

Our Clients

Renewables First works with commercial businesses, farms, industrial operators and landowners across the UK to deliver high-performing renewable energy projects.

We do not just produce reports. We design, build and operate renewable energy systems that generate measurable results.

Landowners, Farmers and Estates

Commercial Clients

Utility Companies

Community Groups

Local Authorities

Investors

Private Residences

Educational Institutions

Conservation Groups

Landowners, Farmers and Estates

Commercial Clients

Utility Companies

Community Groups

Local Authorities

Investors

Private Residences

Educational Institutions

Conservation Groups

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