NFU launches calculator as energy network charge reforms hit farms

Farmers are being urged to prepare for sharp increases in energy standing charges, as changes to the electricity transmission system threaten to drive up costs for farming and growing businesses.

The NFU and NFU Energy have launched a free online calculator allowing members to estimate the impact of the Transmission Network Use of System (TNUoS) charge on their businesses.

The charge covers the cost of maintaining and operating the electricity transmission network.

The tool comes as a series of three changes to standing charges begin to take effect, with increases being phased in from October 2025 through to April 2026.

The NFU has warned the reforms could place significant pressure on farms, particularly those with high or seasonal energy use. Some businesses are already reporting potential cost increases running into seven figures.

Current government energy support schemes were introduced to protect high-energy users from the steepest price rises, but most farming and horticultural businesses are not eligible.

Data collected through the calculator will be anonymised and aggregated, helping to build evidence for the NFU’s lobbying efforts to secure greater recognition for farming within existing energy support frameworks.

NFU President Tom Bradshaw said rising costs were threatening the sector. “Spiralling energy costs, which are set to increase in April, are threatening the viability of farming and growing businesses,” he said.

He added: “Some members are reporting increased costs of over £1 million, which simply is not sustainable.”

Bradshaw urged businesses to use the tool to plan ahead. “I would urge all businesses concerned about their energy costs to take advantage of the calculator to help them plan for the months ahead,” he said.

“Vitally, it will also help us build a picture to show just how extreme these cost rises are as we continue to take the issue to government.”

The NFU is calling on the government to review Standard Industry Classification (SIC) codes, arguing they do not accurately reflect the energy demands of modern farming businesses. It is also pressing for reforms to Ofgem’s Targeted Charging Review, which determines how network charges are set.

Tim Crocker, managing director of NFU Energy, said the reforms marked one of the most significant overhauls of energy network charges in years.

“Energy network charges are undergoing some of the most significant reforms we’ve seen in years, and these changes will affect how costs are distributed across the entire system,” he said.

“For farmers and agricultural businesses, who often operate energy-intensive sites, understanding these shifts is essential.”

Crocker said the calculator was designed to make the changes easier to understand. “The TNUoS Charges Impact Calculator turns a complex policy change into clear, practical insight,” he said.

“The anonymised and aggregated data from the calculator supports the NFU’s wider lobbying efforts for fairer outcomes for all farmers, protecting UK food production.”

The NFU said the evidence gathered through the tool would be used in discussions with government ahead of the final phase of the charging changes in April 2026.