Major changes in the way suppliers are charged for Transmission Network Use of System (TNUoS) and Distribution Use of System (DUoS) costs, are on the way – and you need to make sure your business is ready!
Green Global is working to ensure customers aren’t stung by new rises, but companies have to act fast to ensure they don’t see significant leaps in energy quotes and bills.
To explain, charging costs are split into two parts:
- Residual – the cost of maintaining the electricity network
- Forward looking – the cost of expanding the network
The change effects Residual, 90% of the cost of TNUoS and 50% of DUoS.
Residual charges are currently built into the unit rate, but from next April, network operators will charge suppliers fixed sums for each business customer’s site. This means similar sites paying the same towards maintaining the network.
Customers will fall into different bands that determine the amount they pay for part of their TNUoS and DUoS costs.
Businesses will notice suppliers quoting different charges for the same two non-energy costs, as some build the residual cost into the unit rate, rather than standing charge. This could lead to less accurate quotes, with suppliers asking customers to pay more later.
Networks currently calculate residual and forward-looking charges during months, but this is also changing. The residual element will be charged monthly, across the year.
This means contracts starting in April 2022 will be billed on the new monthly structure…but those starting between May 2021 and March 2022, may include some of the old winter charges and some of the new monthly charges, resulting in far higher quotes.
Contracts from April 2022 will see much higher standing charges as result of the new charging structure and the closer contract starts are to October 2021, the more a quote will rise, potentially adding as much as 45% of TNUoS costs to quotes.
Let Green Global get your quotes from suppliers…
The clock is ticking for companies looking to renew/change contracts. Let Green Global do the legwork for you and present the best options for your business.
Some suppliers haven’t factored in changes and accuracy differs wildly among others.
Green Global’s aim is to prevent customers paying more than they need to and mitigate the impact of the changes in the energy market.
Let us compile and compare quotes with confidence and reliability… and we’ll make it a priority to check with suppliers to know if they’re including TCR in quotes.
Alex Hoyle, Partner Channel Manager, firstname.lastname@example.org