What will changes on the horizon mean for business energy bills?

Key Account Manager Mark Cox looks at the hot topics for energy buyers to be covered in our upcoming Informer Series webinar on energy prices and non-commodity costs.

Change is never far away for energy buyers these days, whether it’s the introduction of a new charge or a shake-up in the way costs are calculated.

Keeping on top of what is coming down the line has become increasingly important for budgeting purposes, even more so in the current climate of political uncertainty.

Unusually high swings seen in cash-out prices in recent weeks are also being seen as being a pointer of much more volatility ahead as intermittent renewable capacity continues to replaces conventional fossil fuel generation.

One notable change energy buyers need to be aware of is the exemption for Energy Intensive Industries (EII) from the indirect costs of Renewable Obligation (RO) and Small Scale Feed-in Tariff (FiT). The exemption was due to be brought in this April but was delayed.

Industries covered by the scheme are expected to see their annual bills cut collectively by an estimated £100m with the costs spread across non-exempt businesses.

Most will see an increase in bills, although it depends on contract type and supplier.

In light of the election outcome our webinar will assess when the measure is now likely to be introduced and what the impact will be.

Another key change buyers need to start factoring into their energy budgets is around transmission losses.

Currently, the cost of transmission losses – the amount of electricity ‘lost’ as it travels along the network – is shared equally across the industry regardless of the location of the generation or demand.

Following the CMA’s investigation into the energy market, zonal transmission losses are being introduced from April 2018 in a bid to more accurately reflect costs.

The impact on customers will depend on a number of factors including location and size of portfolio and we’ll explore this in more depth.

Our webinar will also look in detail at what is happening with wholesale prices and why, along with latest forecasts on system and network charges.

With costs under the FiT CfD scheme now starting to rise rapidly, we’ll also assess the likely costs of environmental charges on future bills.

To sign up for the webinar, click here.