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  • Source:Consultiv Utilities
  • Added:2017

What are non-commodity charges?

Non-Commodity charges could account for upto 60% of your electricity bill so it is important to understand more about them.

These charges include costs that make up an energy bill and are not specifically electricity. These charges are compulsory and are in place to cover the cost of delivering your electricity, balance the grid and cover all other network costs. The government then adds taxes and levies into the equation to support energy saving iniatives that it currently has in place for things like renewable energy and reducing emissions.

When you see non-commodity costs you are likely to hear the terms TNUoS (Transmission Network Use of System), CfD (Contract for Difference), RO (Renewable Obligation) and DUoS (Distribution Use of System), and this only covers some of the charges included.

In 2011/12 your energy bill consisted of around 75% of actual electricty charges (commodity cost), which meant the remaining 25% was made up of non-commodity costs.

What does the future hold?

From the chart below you can see that wholesale prices from 2014 to present have decreased, but the overall cost of your electricity is rising, this is due to our not so friendly non-commodity charges.

The present market is much more volatile than it was previously meaning that we will see non-commodity costs come more to the forefront of a bill as they continue to rise. Over the next 5 years the wholesale price could stay the same or even decrease and your electricity bill could increase. This is because non-commodity charges are increasing and look set to increase at an alarming rate up until 2022.

2021 Forecast

Non-Commodity Forecast

Please note, this chart is to give an indication of the possible charges and should only be referred to as such.

If you are interested in more information then please contact us on the phone number located at the top of this page or alternatively use our contact form on located on our home page.