When is the right time to secure your energy 2023 - Flipbook - Page 8
Why do non-commodity costs matter to you?
Now we have broken down the individual charges that make up non-commodity charges, you may be wondering how this affects your business.
When wholesale energy costs dip, many businesses are seeing their energy bills soar. This is due to the non-commodity prices that are applied
to your energy bill.
Non-commodity charges can account for an estimated 60%-65% of your energy bill, you must implement energy-saving solutions to reduce the
overall general energy consumption of your business.
Although wholesale prices are dropping, they are still volatile. Don’t hesitate, we recommend securing now to avoid future increases to your
business energy bills.
How will the rising rate of inflation impact non-commodity costs?
Non-commodity costs are indexed to inflation, to ensure network owner or generators’ income increases to reflect any increases in
inflation.
Alongside a rising and fluctuating commodity market, the increases in non-commodity costs create an extremely challenging environment
for suppliers and customers alike, which means that in the short term, we are all going to have to pay more.
The table below shows that all non-commodity costs will increase accordingly with the rising rate of inflation, our energy experts
recommend that you secure your business energy deal now to protect your business against rising costs.
Non-Commodity
Jan 2021 Cost
Inflation increase between
Jan 2021 and Jan 2023
Cost (£/mWh)
Difference
(£/mWh)
Distribution Use of System (DUoS)
16.29
7.9%
17.69
1.4p
Transmission Use of System (TNUoS)
7.15
7.9%
7.77
0.62p
Balancing Service Use of System (BSUoS)
8.97
7.9%
9.75
0.78p
Renewables Obligation (RO)
23.90
7.9%
25.96
2.06p
Levy Control Feed in Tariff (FiT)
2.06
7.9%
7.32
0.58p
Contracts for Difference (CfD)
-0.21
7.9%
-0.23
0.2p
Capacity Market (CM)
2.79
7.9%
3.03
0.24p
Climate Change Levy (CCL)
7.13
7.9%
7.75
0.62p
6.5p
TOTAL
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