Non-Commodity Costs make up over 60% of an energy bill for industrial and commercial businesses and these costs are continuing to rise
What are Non-Commodity Costs?
These costs relate to the items on a bill which are not included in the wholesale energy cost. These can be split into three categories; 1) Renewable subsides - which help pay to decarbonise the energy system; 2) System and Network charges - which pay for the upkeep of the electricity network; and 3) Other taxes and levies.
This week’s headlines: the regulator unveils proposals to enable local energy networks to meet growing demand for power; Government is to set out a timeline to review the future of the Climate Change Agreement scheme; and moves to ensure microbusinesses get a better deal on their energy supply are announced.
This week’s headlines: a report from the grid operator predicts demand-side response will become increasingly valuable in the years ahead as Britain shifts towards net-zero; Government announces its latest funding to fuel a green recovery; and Ofgem’s scheme to help energy innovators gets a revamp.