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Up to 30% of a traditional bill pays for wholesale markups, supplier fees and trading costs that never get itemised. Traditional suppliers buy electricity through the wholesale market, adding layers of risk margins and unnecessary trading costs before passing the price to you. RED™ removes them: the tariff comes from tem's own pricing engine, not the wholesale market, so you pay closer to the true cost of energy.

tem fixes your unit rates, standing charge and capacity charge for the length of your contract, and passes every third-party cost through at 0% markup. Every charge is named on your quote from day one, so nothing moves mid-contract without you knowing why. Your RED™ tariff comes from tem's own pricing engine, which fulfils supply and demand across a portfolio of UK renewable generators and businesses, rather than from the wholesale market.

On RED™ Day/Night Fixed, your day and night unit rates cover three things: the energy itself, tem's fee, and ten non-commodity costs every business pays by law. Those ten are CfD, Capacity Market charges, FiT, RO, DUoS, BSUoS, RCRC, the Nuclear RAB Levy, EII Support Levy and AAHEDC. Like VAT, these are obligatory charges set by third parties: NESO, DNOs, and Ofgem-administered schemes. We fix them into your rate for the length of your contract.

tem sets the unit rate on RED™. Removing wholesale market mark-ups means your rate starts from a lower base than a traditional supplier's. Every cost inside it is worked out upfront and locked in, so nothing moves mid-contract.

RED™ Plus is a fixed reduction on your unit rate, pioneered by tem: an additional saving from reducing some non-commodity costs. P442 is an industry scheme that exempts businesses from some non-commodity costs by matching their consumption to UK renewable generation. tem pioneered its rollout and has returned millions in savings to businesses and generators since. The saving is locked in for your contract and shown as its own line, so you can see it clearly.

The standing charge is the cost of keeping your site connected to the network: a fixed monthly charge passed through at 0% markup. Your Distribution Network Operator (DNO) charges for maintaining the wires and substations that bring power to your site. Think of it like line rental on a phone: a fixed monthly fee for keeping the connection open, whether you use that much power or not.

It's built to survive the whole contract, not just this year. We forecast TNUoS (the transmission charge that funds the grid) for your full contract term and build it into your standing charge from day one. Most competitors show only the current year's rate, which is usually the lowest point in the cycle. When TNUoS rose 60%+ in April 2026, customers on our forecasted rate didn't see the jump mid-contract: it was already priced in.

Suppliers split costs between unit rates and standing charges differently, which makes quotes hard to compare. A lower standing charge often means the same cost has moved into the unit rate instead. It's worth checking you're comparing like-for-like.

The capacity charge is the cost of reserving your share of the grid: a fixed monthly charge based on your site's agreed kVA capacity, set by your Distribution Network Operator per kVA per month. Picture your connection as a pipe. The kWh you use is the water flowing through it. Your kVA capacity is the width of the pipe, the most that could flow through at any one moment. This charge is for reserving that width, whether you use all of it or not. It only changes if your capacity agreement changes.

Often, yes. Check your half-hourly data against your agreed band. If a lower band fits, you can apply to your DNO to reduce it. One caveat: getting capacity back later isn't guaranteed, so leave room for genuine peaks. Going over your band brings a separate Excess Capacity charge.

TNUoS covers the fees for running and upgrading the UK's electricity transmission network. It is set by the National Energy System Operator (NESO), not your supplier. Think of the transmission network as the UK's motorways, moving power at high voltage from generators across the country, and the distribution network as the B-roads that carry it the rest of the way to your door. Your rate depends on your site's maximum demand, and every UK business pays it.

NESO confirms next year's rate every January, so nobody knows the number before then. Suppliers who fold this into a fixed price usually build in a safety buffer to cover that uncertainty. tem shows its forecast on your quote, then charges exactly what NESO charges, with no buffer and no markup.