Member Article

How third party charges are piling on the pain of rising business energy costs

There’s double trouble in store for business energy costs, with organisations being hit by higher non-energy charges alongside rising wholesale prices, says Warrington’s Inprova Energy.

Inprova Energy has published a free guide to third party charges to explain these fast rising non-energy costs that account for more than half of today’s electricity bills.

The third party, non-energy costs apply to distribution and network charges for delivering electricity, and green levies to support decarbonisation of the UK’s energy supply and growth of renewables.

“Today, these non-energy costs amount to around 55% of a total power bill – up from 30% five years ago, but expected to push above 60% by 2020”, said Michael Dent, Managing Director of Inprova Energy. “ While nothing’s ever certain in the volatile energy markets, the general consensus is that wholesale costs are rising too.”

The guide explains the ten key non-energy costs that businesses will see on their bills, and what, if anything, organisations can do to reduce these costs.

Dent added: “There’s no room for negotiation when it comes to third party charges, but businesses can find some relief from reducing their energy consumption, particularly during peak charging periods, known as Triads.

“Businesses can, however, do more to control their wholesale costs via smart purchasing and energy efficiency strategies. Thankfully, third party costs aren’t so dominant when it comes to gas bills, where there’s a split of around 65/35% wholesale to non-energy costs.”

Contact Inprova Energy: 0330 166 4444

This was posted in Bdaily's Members' News section by Inprova Energy .