When is the right time to secure your energy 2023 - Flipbook - Page 4
What are non-commodity costs?
Non-commodity costs are costs that originate from a third party such as the government which is then passed on to your energy supplier
and finally passed on to you as part of your gas and electricity bills.
These additional costs cover the costs of delivering electricity to consumers, balancing the grid and extra network costs. In addition to this,
non-commodity charges also account for levies and taxes from the government to support the development of green and renewable energy
technologies and reduce carbon emissions.
Don’t wait to secure your business energy! Non-commodity charges are expected to rise which will cause your business energy bills to
increase. Contact our energy experts today to secure your business energy bills.
The different types of non-commodity costs
Transmission Network Use of System (TNUoS) which covers the cost of building and maintaining energy transmission
infrastructure
Renewable Obligation (RO) requires energy suppliers to purchase or produce a minimum specified quantity of their
requirements from Renewable Energy Sources
Feed In Tariff Contracts for Difference (FiTCfD) which is the government’s main mechanism for supporting low-carbon
electricity generation.
Feed in Tariff (FiT) is designed by the government to promote the uptake of renewable and low-carbon electricity generation
Capacity Market (CM) which ensures the security of electricity supply by providing a payment for reliable sources of capacity.
Distribution Use of System (DUoS) is a charge paid to the Distribution Network Operator that works in the area where the
meter is located.
Balancing Services Use of System (BSUoS) was put in place to make sure there is enough generation to cover demand
is becoming increasingly more difficult and costly, particularly in times of peak demand and when unreliable renewable
generation is low.
Climate Change Levy (CCL) is a that tax was put in place to encourage a reduction in carbon emissions.
Carbon Reduction Commitment (CRC) is a mandatory scheme aiming to support the target to reduce achieve an 80% reduction
in UK carbon emissions by 2050.
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