pls 2014: supplier’s bill – what lies within!
TRANSCRIPT
A suppliers Bill – What Lies Within
Andy Eades
Business Development Manager
npower Industrial & Commercial
Components that make up a typical Electricity Invoice (2014)…..
TLoSS
BSUoS
TNUoSDLoSS DUoS
CCL
ROEMR
CM
CFD
VAT
DC
DA
= £ Final Bill£\ MWhFiT
HDCL
Transmission (National Grid)Transmi ssi on Net work Use of Syst em ( TNUoS) charges recover t he cost of i nst al l i ng and mai nt ai ni ng t he t ransmi ssi on syst em i n Engl and, Wal es, Scot l and and of f shore. Transmi ssi on cust omers pay a charge based on whi ch geographi cal zone t hey are i n, whet her t hey are generat i on or suppl y and t he si ze of t hat generat i on or suppl y. TNUoS t ari f f s are publ i shed by 31 January and t ake ef f ect f rom 1 Apri l each year.
( Dat a provi ded by Nat i onal Gri d 2014)
Third Party Charges - Distribution
DNOS (Distribution Network Operators) own and operate the distribution network that bring the Electricity from the Grid to homes and businesses
Example of DNO Charges (2014) : Example Western Power Distribution (South West)
(Data WPD Published Rates 2014)
Government Levies\Policy:Feed in Tariff (FiT) - A government initiative to incentivise new investment in small-scale low carbon electricity generation. Participants are rewarded through payment for electricity generated at guaranteed rates for the next 20-25 years. To fund the scheme, the costs of FiT will be recovered from all suppliers based on their market share, through the 'Levelisation Process' operated by OFGEM. Suppliers will then pass this cost through to end users on an estimated basis, with quarterly reconciliations once costs are confirmed. (0.293p\kWh)
Renewables Obligation (RO) - A requirement placed on suppliers to provide a proportion of their supplies from electricity generated from renewable sources. Extra supplier costs to meet the Obligation are passed on to customers. The obligation began as a requirement to provide a growing percentage of their supplies from ‘green’ sources. It has since become an order to provide an annually increasing number of ROCs per MWh supplied (0.97p\kWh)
Climate Change Levy (CCL) - Tax in applied in the UK on the business use of energy that was implemented April 2001. The GB levy applies to gas, electricity, coal and LPG, but not oil. Rates can be changed periodically by the GB Government. Renewables are exempt. (0.541p\kWh)
ENERGY COSTS ARE FORECAST TO RISE
RWE npower 10/08/14 10
Impact of policy costs on electricity prices
policies account for 6-19% of prices
increases to 19-47% Increases to 32-71%2013 2020 2030
Estimated average price without policies
Estimated average price with policies
2013
71
2020
79
2030
78
26 28 29
Estimated impact of policies
1 1 1
2013
4
14
2020
15
37
2030
25
55
2013
27
75
85
2020
29
94
116
2030
29
103
133
Gas£/MWh
Electricity£/MWh
Costs added up
Example Costs
Energy 6.3p\ kWh
Transmission 0.97p\ kWh
Distribution 2.8p\ kWh
Supplier Fee 0.3p\ kWh
Government Levies 1.8p\ kWh
Total 12.17p\ kWh
How can we mitigate and manage the cost?
CONSUME LESS PARTICIPATION COST CERTAINTY
WORK IN PARTNERSHIP WITH YOUR ENERGY SUPPLIERWORK IN PARTNERSHIP WITH YOUR ENERGY SUPPLIER
SMARTER CONSUMPTION