10% increase for non-commodity charges predicted in 2017

10% increase for non-commodity charges predicted in 2017

Businesses could see their energy bills increase by up to 10% this year, thanks to the impact of the Capacity Market and rising Renewables charges. Also, a shake-up of DUoS charging on the horizon could have major impacts from next year.

Head of Pricing Gavin Baker previews our latest non-commodity costs forecast ahead of our webinar later this week.

Capacity Market shapes the landscape for 2017

Over the last two months, we’ve seen two Capacity Market auctions. The T-1 auction closed at...

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Our learnings from the Leighton Buzzard Big Battery

Yesterday, Angus Widdowson presented at the Energy Storage and Connected Systems conference, sharing our experience as a commercial partner on UKPN’s Leighton Buzzard battery storage project. Here he takes us through the lessons learned and what SmartestEnergy are doing on the back of this to build a viable route to market for grid scale projects.


Energy Storage and Connected SystemsThe Leighton Buzzard 6MW/10MWh Lithium-ion battery connected to the grid in November 2014. Our role as trading partner included providing access to...

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DSR misses out in the Capacity Market

Following the Capacity Market Early Auction last week, Head of Technology Jim Marshall discusses the results and what it means for the market.

Last week, National Grid ran the Capacity Market Early Auction to secure capacity for winter 2017.

The auction cleared at the lower-than-expected price of £6.95/kW, with contracts awarded for 54GW of capacity. This means the total cost of securing supply for next winter will be £378 million.

(Our Pricing Team will be presenting our latest forecasts...

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Smart businesses should recognise their electricity is no longer a utility

Today the National Grid will invite bids to provide 53.6GW of capacity to help keep the lights on when electricity supplies run low next winter. This process will ensure the lights stay on and the principal way it will do that is to pay large, old power stations a benefit to continue to make themselves available. Without these payments from National Grid, many of these power stations would not be commercially viable and they would shut down and decommission.

The above solution is very much the ...

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Why is certified renewable electricity so important?

Last week, SmartestEnergy launched the UK’s first certified 100% renewable electricity supply product. Head of Marketing and leader of the product’s development, Mike Shirley, explains why this is such an important milestone for the industry.

Many of the UK’s biggest companies are now choosing to be supplied with renewable electricity. This increased demand for clean energy is good news for the planet, for renewable generators, and for the consumers that buy from these brands.

But there is...

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2016 – a big year for batteries

This year has seen significant developments for battery storage - with EFR contracts awarded in the summer and the Capacity Market in early December, the sector has really gathered pace.

Here’s a round-up from our Demand Side Management expert, Robert Owens, of all things batteries for 2016…

1) Frequency Contracts

Good news for independent developers in the EFR auction back in August. Out of the total 201MW of awarded capacity, 60% belongs to independent companies. However, the successful...

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What does 2017 have in store for electricity bills?

With Drax’s Contract for Difference (CfD) approved yesterday and the Capacity Market running this winter, business energy users can expect to see higher non-commodity charges on their bills in 2017. Key Account Manager, Mark Cox explains some of the costs that customers need to be ready for.

News yesterday that the European Commission had approved the CfD for Drax to convert one of its coal-fired units to biomass was a timely reminder of the higher non-commodity charges forecast for 2017.

It is...

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Positive outcome for batteries in the T-4 Capacity Auction results

This winter’s first of three Capacity Market Auctions, the T-4 auction for delivery in 2020/21 cleared yesterday. VP of Demand Side Management Robert Owens comments on the prices and the positive outcome for battery storage projects.

After 11 rounds, the T-4 Capacity Auction cleared yesterday, with agreements for 52.43GW of capacity at a price of £22.50/kW/yr.

This is in the middle of expectations leading immediately up to the auction, which were hovering around £20-£25/kW/yr.

However, this...

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Rising wholesale prices not the whole picture for generators

The latest SmartestEnergy Embedded Benefits webinar looked in detail at what has been happening to wholesale prices and charges along with forecasts for the future. Webinar presenter and Business Development Manager Matt Neve runs through some of the highlights.


Watching power market movements of late will have put a smile on the faces of some generators as winter approaches.

Recent weeks have seen some of the highest-ever peak electricity prices after a general upward trend which began early...


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Flexibility has crucial role to play in our future energy system

Following his presentation at the EMEX event in London this week, Robert Owens explains how Demand Side Response (DSR) and storage will drive the transition to a smarter energy system while helping companies meet their energy ambitions.

Ofgem and the Government recently launched a consultation seeking industry views on the shift they want to see towards a much more flexible energy system.

The prize on offer from greater flexibility is huge, with research by Imperial College and the Carbon...

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