Costly updates to your energy bill this April are no joke

Costly updates to your energy bill this April are no joke

Several key industry updates take effect from April this year, including new energy efficient legislation to comply with and alterations to certain non-commodity costs. Each could significantly increase your bills.

Don’t be an April Fool, make sure you’re prepared.

In April there will be some major changes coming into play in the energy industry. Whether you’re affected by all or just one, your business could see a significant cost impact. We’ve provided a summary below of these key changes to make sure you know how to take action to mitigate the impact.

 New energy efficiency requirements in force

In terms of energy compliance, ESOS may not be your only concern. As of 1 April 2018 new Minimum Energy Efficiency Standards, better known as MEES, will come into force. Aiming to improve the energy efficiency of buildings, MEES will make it illegal to grant new leases to properties with an F or G rated Energy Performance Certificate (EPC). There are strict penalties in place for non-compliance, and fines could reach up to £150,000. The impact of fines will be compounded by loss of earnings while non-compliant properties cannot be rented.

Utilitywise are able to assess your current EPC level and help you with energy efficiency projects to increase your rating to a MEES-compliant E or above. To find out more, download our guide.

Why is your energy bill increasing?

Your energy bill is set to rise again, as changes to distribution charges will take effect in April.

The introduction of DCP 161 and a regulatory change, DCP 228, will bring price increases to businesses:

  • DCP 161 has been introduced by Ofgem. Its purpose is to ensure that businesses with half hourly (HH) supplies that exceed their assigned available capacity, pay more.
  • DCP 228 will revise how DUoS (Distribution Use of System) charges are calculated, so they accurately reflect the costs incurred by network operators during peak and non-peak periods.

These two charges are set to further increase the already spiralling non-commodity cost (NCC) element of your energy bill, which is a mix of transmission, distribution, and other regulated charges you pay on top of the wholesale cost of energy.

In less than three years time, these extra charges will account for the largest portion of your energy bill at 66%.

Non-commodity costs for electricity will have risen 230% by 2020 compared to 2010 levels: 37% non-commodity costs in 2010 versus 66% non-commodity costs in 2020.

Utilitywise can help you control your costs

It’s critical that you take control of these soaring costs, and we recently hosted a webinar – The Rise of NCCs – to show you how.

To catch up on our webinar, click here to listen.

If you’d like to download our webinar recording, click the button below.

webinar download

Amy Shaw

Posted by on Monday, the 19. February at 11.37

Amy is part of our Corporate Marketing Communications team, working on everything from product campaigns and event planning, to content writing and social media.