When is the right time to secure your energy 2023 - Flipbook - Page 5
How non-commodity costs have changed between 2020 and 2023
The graph shows that the non-commodity costs on electricity bills has risen significantly over the last couple of years and the reference
commodity cost (wholesale price) is dropping. Indicators show that non-commodity costs are going to continue to rise causing businesses’
energy bills to increase as shown by the cost breakdown on page 9.
40
Reference Commodity Cost (Wholesale)
35
Non-Commodity Cost
25
20
15
10
5
0
Q4 2020 - Q1 2021
Q2-Q3 2021
Q4 2021 - Q1 2022
Q2-Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Time Period
Why do energy bills continue to rise if the actual cost of energy is cheaper?
The underlying charges for TPCs are at their highest point ever – meaning that any changes to TPCs can make a significant difference to
energy costs overall. The graphs below show that wholesale gas and electricity prices have dropped but reached 75p/kWh for electricity
and 25p/kWh for gas in August 2022. If wholesale prices only repeated for a small part of the last 16 months, it creates huge unit price
pressures again. Wholesale energy prices are still extremely volatile which is why we recommend securing your business energy prices
now before the potential price rises as we have seen previously.
Wholesale
Prices
EnergyElectricity
Bill Discount
Scheme - Electricity
80
Pence per kWh
70
60
50
40
30
20
10
Jun 22
Jul 22
Aug 22
Sep 22
Oct 22
Nov 22
Dec 22
Jan 23
Feb 23
Mar 23
Apr 23
May 23
June 23
July 23
Month
Time Period
Wholesale Gas Prices
30
25
Pence per kWh
Pence Per kWh
30
20
15
10
5
0
Jun 22
Jul 22
Aug 22
Sep 22
Oct 22
Nov 22
Dec 22
Jan 23
Feb 23
Mar 23
Apr 23
Month
Time Period
5
May 23
June 23
July 23