When A Fixed
Contract Isn’t
Fixed
H
ow do you feel about an extra 10-20% on your gas
and electricity bills? Thanks to sweeping changes
in the UK energy system, you may not have a choice.
Feed-in Tariffs
Feed-in Tariffs
A key reason for these increases is the rise in third party charges.
Carbon will alsoSupport of your
Price take more
These are a Similarly, charges that go Feed-in Tariffmaking up an average the Micro-Genera
set of the Micro-Generation towards scheme (FiT)
Similarly,
money. This was introduced in 2010 to encourage homes and businesses
organisation’s energy bill. It isn’t just the wholesale energy money.to generate (CPS
itself Price Support
The Carbon This was introduce
their own renewable energy, using sources including wind and photovoltaic solar.
that you’re charged for when you pay your at fixed rates per kWh impact this electricity bil
utility bills (although every
their own renewable energ
will
Those generating their own energy are paid
by their suppliers.
Those generating
energy energy has
makes up 50-66% of the cost). Just overof people generating their own under its Emissions ow
30% of your electricity bill (or their Tra
Since the scheme started, the number
Since the scheme
to more renewable
10-20% ofFixed Energy400%, for the that more the delivery network, while are started,
increased bill) is meaning use of payments are being made. These costs options. Th
When a your gasby Contract
increased by Review, whic
Electricity Market400%, mean
the
up to 10-15% goes onon to customers as increased unit often see these onpassed onno custom
your
isn’t Fixed being passed taxes and levies. You’ll rates on bills –inandbeingrise showsthe growth
order to support to
signs of stopping. Business customers are currently seeing FiT fees increase on their
We uncover the hidden under ‘other in
invoice listedcharges that could be lurkingcosts’.
signs electricity prices thi
wholesale of stopping. Busines
your ‘fixed’ contract
electricity bills by around 15% to 0.25p/kWh and more, and are set to rise further in
electricity bills by around 1
the future.
the future.
How do you feel about an extra 10-20% on your gas and electricity bills? Thanks to sweeping
changes in the UK energy system, you may not have a choice.
A key reason for these increases is the rise in third party charges. These are a set of charges that
go towards making up an average organisation’s energy bill. It isn’t just the wholesale energy
itself that you’re charged for when you pay your utility bills (although this makes up 50-66% of
the cost). Just over 30% of your electricity bill (or 10-20% of your gas bill) is for the use of the
delivery network, while up to 10-15% goes on taxes and levies. You’ll often see these on your
invoice listed under ‘other costs’.
CRC
Taxes &
Levies
StartCRC
by checking the terms of your contract
formats: fixed-price, ‘all-inclusive’ offers, and
Costs under the Carbon Reduction Commitment Energy Efficiency scheme (CRC) are
Costs under the
Similarly, part of the CRC must buy allowances to Carbon w
Fixed-price, ‘all-inclusive’ contracts: (FiT) Re
also likely to increase. Companies who are the Micro-Generation Feed-in Tariff scheme Contain
Gas
also likely to increase. Com
money. This was introduced in 2010rise.
costs unexpectedly carbon under
offset their carbon emissions. These were pegged at £12 per tonne ofto encourage homes an
emissio
their own renewable energy, usingoffset their carbon wind an
Phase 1 of the project, but Phase 2 is likely to see those allowancessources including
vary in price on
Pass-through contracts:paid at fixed rates but
Phase Suppliersproject