SYNERG January 2014 | Page 14

WHAT FACTORS MAKE UP YOUR ELECTRICITY COSTS? A variety of factors make up UK business power prices. Here are some of them: Wholesale Power BSUoS Feed-in-Tariffs GB average DUoS HDCA Climate Change Levy GB average TNUoS Renewables Obligation 10.0 8.0 At a Glance: What Factors Make Up Your Electricity Price? he whole country’s talking about rising energy prices, but what is actually included in the total at the bottom of your business’ electricity bill? The price of commercial electricity is made up of a lot more than the wholesale cost - in fact, wholesale energy prices only make up 50-66% of your total electricity bill. T p/kWh 6.0 4.0 A large chunk of the total at the bottom of your bill will go towards distribution use of system (DUoS) charges, which are the fees of distributing power from the substation to your premises. Transmission network use of system (TNUoS) charges are also applied, which cover the fees charged to use the electricity transmission grid. There are also various environmental charges included in the total cost of business’ electricity including renewables obligation (RO) charges and the Climate Change Levy. 2.0 See what other levies and charges lie hidden within your electricity bills and how they have changed over time in our infographic. 0.0 2012-13 www.energ.co.uk/procurement Charging Year 2013-14 View the infographic now 15