Take control of your energy taxes

Take control of your energy taxes

Energy costs have long been a significant overhead for UK businesses and public sector organisations. Historically the main challenge was the rising wholesale cost of gas and electricity markets due to soaring oil prices. Now though, the situation has changed.

Rapidly increasing non-commodity costs (NCCs) – such as Contracts for Difference (CfD), Renewables Obligation (RO) and Capacity Market – mean that taking control of your consumption is now just as important as buying at the right time.

The cost to your business if you don’t take control is rising every year

Our in-house analysis shows that by 2020, NCCs will account for the largest portion of your energy bill at 64%. These obligatory third party taxes include: costs to support government environmental obligations and the subsidy of energy efficiency schemes. The charges are predicted to have rise 200% in a ten year period from 2010 to 2020. In monetary terms, this means an electricity bill for a 10GWh customer which cost £635,000 in 2010 is likely to exceed £1.2 million in 2020.

But all is not lost

Whilst these charges are compulsory, we can provide advice to help you choose the right procurement contract, utilise the right smart technology and implement the optimum energy management strategy to control and ultimately reduce these rising and increasingly complex costs.

Find out more with our free webinar

Utilitywise want to help you take control of your energy taxes and invite you to join our webinar on Date: Tuesday 8 August Time: 11.00am – 11.45am.

Our Head of Analytics and Market Intelligence, Veronica Truman, along with Flexible Procurement Team Manager, John Palmer will discuss energy taxes and how you can control them. Our team will:

  1. Provide an overview of the taxes, introducing the most recent charges to your bill and illustrate the cost impact they have.
  2. Explain the constraints certain supply contracts can have over your ability to control NCCs.
  3. Advise of the best ways to reduce and control NCCs.

Register today

To register your free place for our webinar, click here

What are non-commodity costs?

Non-Commodity Costs relate to the delivery of electricity to a customer. These are costs which do not form part of the price of the energy itself. These obligatory charges, levies and taxes cover the cost of various issues related to delivering energy. This includes network costs, the cost of delivering the electricity to the meter, and balancing the power system. There are also government policy costs which are currently aimed at reducing carbon emissions and supporting renewable energy development. These charges include the Climate Change Levy (CCL) along with subsidy schemes such as Renewables Obligation (RO), Feed-in-tariff (FiT) and – more recently – Contracts for Difference (CfD).

Utilitywise

Posted by on Thursday, the 27. July at 15.29

Utilitywise has been helping businesses manage their business utilities since 2006. With over 40,000 customers across Europe, we help businesses save time, save effort and save money by reducing their energy and water consumption.