Non-Commodity

There are a whole raft of additional charges included within a business's electricity bill over and above the wholesale cost of electricity. This non-commodity part of an electricity bill has over recent years increased exponentially as the government strives to meet its carbon reduction commitments and transition to a renewable future.

The non-commodity element of a business electricity bill is the part of your bill that is increasing, leading to an increase in your overall electricity costs, our analysis currently shows that non-commodity costs on a typical electricity bill equate to as much as 60-65%, a figure that in coming years is likely to increase to as much as 70-75%.

There are ways that businesses can better manage and reduce their non-commodity costs through things like smarter procurement,  moving consumption away from peak times to reduce distribution & transportation charges and if in an applicable industry enter into schemes such as Climate Change Agreements leading to a reduction in some of the main renewable charges.

Smarter non-commodity procurement
One of the simplest and inexpensive ways to save on non-commodity costs if you have a half hourly meter is to opt to pay the prevailing rate for your renewable charges, transportation & distribution costs. In a traditional fixed contract the supplier will charge their forecast rate for the relevant charge + a risk margin, a lot of non-commodity costs are released and agreed upon by the relevant bodies well in advance, so you're paying a premium for these costs, a premium which the supplier is retaining as profit.

Within our team we have experts in non-commodity costs and can advise you based on your profile if there is a cost saving available in opting to pay the prevailing rate, as oppose to the supplier fixing the rate at their estimates.

Distribution & transportation charges
Energy costs from the grid vary throughout the day and operate on a traffic light system, shifting usage outside of peak periods can result in reduced charges. Begin to understand more about what Demand Management can do for your business.

Reducing renewable taxes & levies
Businesses operating in a wide variety of industries are now able to reduce renewable costs levied upon them if they enter into certain schemes, each scheme has different qualifying criteria and some have targets to reduce energy consumption and carbon emissions in order qualify for the reductions.

Our compliance team is able to support in the application process, reporting and administration of the schemes, increasing your businesses green credentials and delivering cost savings. Find out more on our Legislative Compliance page.