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: demand on the GB transmission system falls to its lowest-ever level; MPs have urged action to remove barriers to greater deployment of offshore wind; and the regulator has stressed the importance of delivering more investment for less as it prepares to set out new network price controls.
This week’s headlines: using surplus renewable generation to produce hydrogen could significantly boost renewable generators’ revenues in the decades ahead; Ofgem is easing the burden of the increased costs of balancing the system during Covid-19; and wind helps the UK break another renewables record in the first quarter of the year.