The rise (and rise) of electricity charges
It won’t have been lost on many businesses that energy costs are accelerating once again. The question is why. With the Wholesale cost of Electricity comparable to previous years, why do my bills keep increasing?
The problem is that non-commodity costs have increased dramatically and these costs are not always apparent in energy bills, but they are there, and they are increasing dramatically.
What are these costs and how are they calculated?
Most businesses are familiar with government charges (taxes) that are applied to energy bills to support green energy generation. The most familiar of these is the Feed in Tariff and Climate Change Levy, otherwise known as FiTs and CCL. Initially, Fits added 0.26 pence to the tariff of an electricity bill, today, they can go as high as 0.57 pence.
2015 saw the introduction of new charges that are having an impact on businesses energy costs, particularly electricity.