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< Back to news 30 April, 2015

How do third party charges affect your energy bill?

Are you aware of how costs other than wholesale fluctuation in pricing can impact your energy price? Beacon take a look at how non-energy charges could account for more than 50% of a large electricity user’s bill...

Non energy charges are the extra charges on top of the raw wholesale cost of the energy you use.

Various green levies have been introduced to increase supplies from renewable sources which add to the cost on your delivered bill, either directly as a pass through or bundled into the prices with a premium. 

Existing charges include Transmission Network Use-of System (TNUoS) and Distribution Use-of-System (DUoS).

Here’s a quick break down of each green levy that could affect what you pay for your energy:

  • Climate Change Levy (CCL) –A tax on UK business energy use, charged at the time of supply. 
  • Renewables Obligation (RO) – Enforces suppliers to increase the proportion of their supply from renewables. RO accounts for the majority of renewable third party charges on your energy bill.
  • Feed-in Tariffs (FiT) – An incentive for businesses to generate their own electricity. Suppliers make FiT payments to you for any electricity you generate or sell back to the grid.
  • Electricity Market Reform (EMR) – The EMR aims to encourage industry to decarbonise. Two elements involved are:
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Interested in discussing how Beacon can make your business not only more sustainable, but profitable too? Why not contact us online today, or alternatively call 01904 695588.