When reviewing your business gas and electricity bills, the different charges may initially seem complex. Here are the various charges you might encounter on your bill:
Wholesale Energy Costs: These are the expenses incurred by your energy company when procuring gas and electricity from wholesale suppliers. To ensure a continuous supply throughout your contract period, energy companies purchase the anticipated energy consumption in advance.
Transmission Use of System (TNUoS) Charge: This charge encompasses the costs associated with transporting and distributing your energy, with a portion allocated for maintaining the National Grid.
Distribution Use of System (DUoS) Charge: These costs are imposed by licensed companies known as Distribution Network Operators (DNO), responsible for distributing electricity within the UK.
Climate Change Levy (CCL): An environmental tax designed to incentivize businesses to enhance energy efficiency and reduce carbon emissions. Some businesses may be exempt from this levy based on their usage of renewable energy.
Metering Costs: These cover the expenses related to acquiring and maintaining your gas and electricity meters.
VAT: Typically levied at 20% on business gas and electricity bills, with a lower rate of 5% applicable if your daily electricity usage is below 33 kWh or gas usage is below 145 kWh.
Supplier Margins: This represents the profit earned by your supplier from your business, encompassing marketing, acquisition, administrative costs, and overall profit.
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