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Energy industry update

19 August, 2020
Government sets out plans to drive up smart meter installations

The UK Government have set out new plans for the installation of smart meters across the country. This will enable consumers to continue to cut their energy bills and carbon emissions as COVID-19 lockdown measures are eased.
What we know:
  • Consumer safety at heart of new government plans to install smart meters in homes and businesses over 4 years

  • Ambitious future targets for smart meter installations to be set out for energy suppliers, while flexibility given around current targets due to the impact of lockdown restrictions.

  • Smart meters key to UK reducing emissions and instrumental in cutting up to £16 billion off annual cost of delivering net zero emissions by 2050

The growing importance of non-commodity energy costs

The key to reducing business costs is understanding what actually goes into our bills and the increasing impact of tax and system charges.

The price we pay for our energy will depend on many factors. Over 40% of charges on our bill is the wholesale cost of gas and electricity, with the remaining being other factors impacting the delivered pence per unit. These include the cost of distribution, transmission charges, government tax (VAT), environmental costs and meter provision, as well as the energy companies supply costs etc.

Government policies set to increase non-commodity charges from April 2020
Government policies were forecast to add around £55.07MWh to electricity invoices by April 2020 - 33% more than April 2018 prices. These policies include:
  • Contracts for Difference low-carbon subsidy

  • Green policies to support renewable generation

  • The Climate Change Levy

How do we avoid these increases?
We cannot avoid today’s market or the increase in pass through charges we continue to see. However, if we can help you shape your energy use through careful and considered energy management, we may be able to mitigate some of these rising costs both now and in the future.

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If you have any queries or would like to find out more please get in touch. 01603 881881Honingham Thorpe, Colton, Norwich, Norfolk NR9 5BZ
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