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Third Party Costs

Third Party Costs

15th Jun 2016

CPO

By Haven Power.

Third-Party Costs are increasing, Haven Power can help!

Energy contracts are becoming more complex with an increasing number of third-party costs associated with energy market infrastructure, Government policy and taxes. Businesses now need support and advice from their supplier more than ever to manage budgets, understand opportunities to reduce cost and plan ahead effectively.

Third party costs have been on a long-term rising trend driven by measures intended to tackle the energy trilemma:

  1. Policy to encourage energy efficiency and reduction in demand i.e. taxes linked to usage and emissions; the Climate Change Levy (CCL), and the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme.

  2. Policy to subsidise renewables generation through the Renewables Obligation (RO), micro-generation feed-in tariffs (FiTs) and costs associated with Energy Market Reform (EMR).

  3. Investment in renewal of existing infrastructure and electricity networks as well as new infrastructure to manage new low carbon generation.

Third-party costs account for around 56% of the bill and this is set to rise further.

  • TNUoS – Decreased Peak System demand due to higher embedded generation: Up 18% on average for 2016/17.

  • DUoS – Embedded generation increasing network costs: Up 7.8% on average for 2016/17  -

  • BSUoS – Increased wind generation, Low overnight demand and geographical constraints: c.£2.40/MWh (up 14%)

  • RO – Changing Government policy led to an accreditation rush: c.£15.58/MWh (up 22%)

  • ss-FiT – Changing Government policy led to an accreditation rush: c.£5.15/MWh

  • CfD FiT – State Aid Approval of larger schemes should see this charge become more significant: £0.87/MWh 

 

Haven Power can give you the right tools, information and market insight to keep you informed about the ever changing market. We offer quarterly third party costs newsletters with updates and forecasts for each charge, support with demand side management, TRIAD forecasts, budgetary tools and regular review meetings to ensure our customers are kept up to date. If you would like to find out more on how we manage third party costs please contact one our Key Account Managers below.

 

Graham Minns T: 07740 407788 | E: graham.minns@havenpower.com

Ian Gillard T: 07710 085946 | E: ian.gillard@havenpower.com

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