Significant Changes to DUoS Rates for 2025-2026: What Public Sector Energy Consumers Need to Know

Distribution Use of System (DUoS) charges, which form a key part of energy bills, are set for a major overhaul in 2025-2026. These charges, determined by Distribution Network Operators (DNOs), cover the cost of operating and maintaining local electricity networks. For some context, of the overall electricity non-commodity costs, DUoS typically accounts for circa 30%. While these updates may not make headline news, their implications will felt by all consumers, including WME’s public sector customers.

What Are the New DUoS Rates?

The DNOs have published revised DUoS rates for the 2025-2026 period, revealing substantial changes compared to the current rates. Here are the key changes:

Increased Capacity Charges: Customers will see higher capacity charges (costs based on maximum demand), with significant variations across regions.
Reduced DUoS rates within the Standing Charges: Fixed daily charges (pence per day) are set to decrease, providing some relief on the fixed cost component of energy bills.
Higher DUoS rates Unit Rates: Most regions will see a 30-40% increase in unit rates (charges per kWh consumed), impacting overall costs for energy usage.

The variations are significant between regions, with some areas seeing increases as high as +19% and some decreasing by as much as -39%.

Why Are These Changes Happening?

The energy landscape is evolving, and DUoS charges are being adapted to reflect this new reality. Key drivers behind these changes include:

Grid Modernisation: The increasing integration of renewable energy sources requires investment in grid infrastructure to maintain reliability and support a more dynamic energy flow.
Peak Demand Management: By incentivising off-peak energy usage, DNOs aim to reduce strain on the grid during high-demand periods, making the system more efficient.
Decarbonisation Goals: As the UK moves towards its net-zero carbon target, DUoS charges are being structured to align with sustainability objectives, encouraging energy behaviours that support lower carbon emissions.

What Does This Mean for Public Sector Organisations?

Public sector energy consumers will need to adapt to these changes, which could have a notable impact on operational budgets. Here are some key considerations:

Budgetary Impacts: With increases in capacity and unit charges, organisations will need to review their energy consumption patterns with a view to decreasing the Maximum Demand where possible.
Operational Adjustments: Schools, hospitals, and other public facilities may need to explore ways to shift energy-intensive activities to off-peak hours. For example, this could mean adjusting heating schedules or running equipment during cheaper tariff periods.
Energy Efficiency Opportunities: The new rates underscore the importance of investing in energy efficiency measures. Reducing overall consumption not only mitigates cost increases but also contributes to sustainability goals.

How Can West Mercia Energy Help?

Navigating these changes can be complex, but WME is here to support public sector organisations every step of the way. Our expertise in energy procurement and sustainability can help you:

Analyse the Impact: We can help you understand how the new DUoS rates will affect your energy bills.
Optimise Energy Use: Our team can provide tailored advice on shifting energy usage patterns and improving energy efficiency.
Validate the new charges: Our experienced billing team will ensure all of the new charges are levied correctly, before we accept supplier rates.
Plan for the Future: By identifying opportunities for renewable energy adoption or demand-side response initiatives, we can help your organisation align with broader decarbonisation goals.

Taking Action

With the new DUoS rates set to come into effect in 2025, now is the time to start planning. Understanding these changes and taking proactive steps to adjust can help public sector organisations mitigate costs while supporting sustainability initiatives.

To learn more about how these changes will affect your organisation and how West Mercia Energy can help, contact us today.