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
How do we avoid these increases?
- Green policies to support renewable generation
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.