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Residual charging bands
Distribution Use of System (DUoS) charges help recover the cost of maintaining the electricity distribution network.
Part of these charges is known as the residual charge. This page explains how residual charging bands work, the thresholds that apply from 1 April 2026 and when you can ask us to review your charging band.
Domestic customers are not divided into residual charging bands. The same residual charge applies to all domestic customers. Non-domestic customers are allocated to one of four residual charging bands within the relevant charging group.
What are residual charges?
Ofgem's Targeted Charging Review changed the way some electricity network costs are recovered.
Historically, some network charges varied depending on how much electricity was used and when it was used. Residual charges are now recovered through fixed daily charges.
Residual charges form part of ongoing Distribution Use of System charges. They are different from the one-off charges that may apply when obtaining or changing an electricity connection.
How residual charging bands work
Domestic customers are not divided into residual charging bands. The same residual charge applies to all domestic customers.
Non-domestic customers are allocated to one of four residual charging bands within the relevant tariff group.
How your band is allocated
The banding method depends on the type of site:
- Non-half-hourly sites: banding is based on annual electricity consumption, measured in kilowatt-hours (kWh), using consumption data for the period from 1 May 2022 to 30 April 2024.
- Half-hourly sites: banding is based on the 24-month average Maximum Import Capacity (MIC), using the period from 1 May 2022 to 30 April 2024.
Maximum Import Capacity (MIC) is the maximum amount of electricity import capacity agreed for a site.
Residual charging band thresholds from 1 April 2026
The thresholds below apply to non-domestic customers from 1 April 2026. Domestic customers are not divided into residual charging bands.
For each boundary, the upper threshold is included and the lower threshold is excluded. For example, a value of exactly 150 kVA falls within the band with an upper threshold of 150 kVA, rather than the next band.
Non-Domestic Aggregated
Banding is based on annual electricity consumption in kilowatt-hours (kWh).
| Band | Annual consumption threshold |
|---|---|
| Band 1 | More than 0 and up to and including 3,986 kWh |
| Band 2 | More than 3,986 and up to and including 13,677 kWh |
| Band 3 | More than 13,677 and up to and including 27,543 kWh |
| Band 4 | More than 27,543 kWh |
LV Site Specific and LV Sub Site Specific
These categories use the same thresholds. Banding is based on Maximum Import Capacity (MIC), measured in kilovolt-amperes (kVA).
| Band | MIC threshold |
|---|---|
| Band 1 | More than 0 and up to and including 90 kVA |
| Band 2 | More than 90 and up to and including 150 kVA |
| Band 3 | More than 150 and up to and including 250 kVA |
| Band 4 | More than 250 kVA |
HV Site Specific
Banding is based on Maximum Import Capacity (MIC), measured in kilovolt-amperes (kVA).
| Band | MIC threshold |
|---|---|
| Band 1 | More than 0 and up to and including 500 kVA |
| Band 2 | More than 500 and up to and including 1,100 kVA |
| Band 3 | More than 1,100 and up to and including 2,000 kVA |
| Band 4 | More than 2,000 kVA |
EDCM
Banding is based on Maximum Import Capacity (MIC), measured in kilovolt-amperes (kVA).
| Band | MIC threshold |
|---|---|
| Band 1 | More than 0 and up to and including 3,500 kVA |
| Band 2 | More than 3,500 and up to and including 11,000 kVA |
| Band 3 | More than 11,000 and up to and including 20,000 kVA |
| Band 4 | More than 20,000 kVA |
When can your residual charging band change?
A residual charging band can only be changed where the relevant criteria in Schedule 32 of the Distribution Connection and Use of System Agreement (DCUSA) are met.
The allocation of a site to a band can change:
- if the site transitions between a Final Demand Site and a Non-Final Demand Site
- if exceptional circumstances apply as defined in DCUSA Schedule 32
- following a successful dispute under DCUSA Schedule 32.
Exceptional circumstances
A customer may be eligible for reallocation to a different charging band where there has been:
- a change in the voltage of the connection
- a change in how the site is used that results in a significant change to its Maximum Import Capacity, for example where a factory becomes smaller office units.
For a change in capacity to meet the exceptional circumstances threshold, the change must be greater than 50% from the capacity used to set the bands.
How to request a band reallocation
If you believe your site meets the criteria for a residual charging band reallocation, you must make a written request and provide the relevant supporting evidence.
Your request should include:
- a signed Connection Agreement, where required
- a letter explaining the exceptional and significant change of use, signed by a Company Director or equivalent, such as a Company Secretary or Energy Manager
- evidence that the relevant change is greater than 50% from the capacity used to set the bands, where this criterion applies
- any other supporting information needed to demonstrate that the relevant requirements in DCUSA Schedule 32 have been met.
Send your request to:
nged.connectionspolicy@nationalgrid.co.uk
Frequently asked questions
What happens after I request a review?
We will investigate your request based on the explanation and supporting information you provide.
If someone other than you or your current electricity supplier submits the request, it must include a Letter of Authority from you. Your current supplier must also confirm that they are aware of the request.
If a technical assessment or site visit is required, an administration charge covering our reasonable costs may apply. We will not apply this charge where we agree to the change request.
If we reject the request, we will explain why. We would expect to confirm our position within three months of the date of the request.
If a residual charging band allocation cannot be resolved, the dispute process in DCUSA Schedule 32 applies.
Can I request a change to my MIC or MEC?
Yes. Changes to Maximum Import Capacity (MIC) or Maximum Export Capacity (MEC) can continue to be made in line with the terms of the Connection Agreement.
Capacity charges will increase or decrease as appropriate. However, a change to MIC or MEC will not automatically result in a change to your residual charging band. A band reallocation will only take place where the requirements set out in paragraphs 6.1 and 6.2 of DCUSA Schedule 32 are met.
How often are residual charging bands reviewed?
The banding categories are reviewed in advance of each price control period.
The next review of bandings will take place in 2028, with resulting changes taking effect from April 2030.