Monday 14 May 2018

Third-party energy cost calculator estimates impact of rising charges

Inprova Energy has launched an online third-party cost calculator to help business energy buyers estimate how rising non-commodity charges may affect their electricity bills over the next four to five years.

These third-party charges apply to the non-energy costs of  distributing and transmitting energy to the customer and incentivising lower carbon supplies.

Non-commodity charges are rising sharply. Around six years ago they accounted for around 30% of an electricity bill, but today that's more than 50% and they are predicted to exceed 60% by 2020.

"Organisations now spend more on third-party charges than they do on their actual energy,  so it's vital that they can understand how these rising costs might impact their business energy bills", said Michael Dent, Managing Director of Inprova Energy. "Our calculator provides an indication of  the charges over time, enabling energy buyers to forecast and budget better."

[caption id="attachment_164251" align="aligncenter" width="640"] Michael Dent, Managing Director of Inprova Energy.[/caption]

The  calculator enables energy buyers to estimate the potential impact of third-party charges according to their regional location, voltage, sector and annual energy consumption profile.

It provides a full breakdown of each non-energy charge for the next five years, together with illustrations of the potential effect of recent policy changes.

Organisations can see how the April 2018 DCP228 changes to the Distribution Use of System bands (Red, Amber, Green) could affect their costs.

The calculator also indicates the impact of rising Climate Change Levy charges, which will increase dramatically in April 2019 following the closure of the Carbon Reduction Commitment (CRC) scheme.  Energy buyers can also assess how the cost of Energy Market Reform might impact their electricity bills.

Take a look at the Inprova Energy third-party energy cost calculator

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