Insights / Our April 2021 guide to Third Party Costs

Our April 2021 guide to Third Party Costs

20th April 2021

Third Party Costs (TPCs), also called non-energy or non-commodity costs, make up around 60% of a typical electricity bill.

These costs help to pay for the cost of generating power, as well as the infrastructure that gets the power from where it’s generated to where it’s used.

Depending on your contract and your electricity supplier, the way these costs are charged to you can change.

The pandemic - and the measures taken to restrict its impact - posed a unique challenge for the electricity network.

A drop in electricity demand during the first lockdown, and high levels of generation from renewable sources, made balancing the grid more difficult - and more expensive.

This was just one of the challenges the network faced. The impacts of Covid-19 will continue to be felt in 2021 and beyond.

Our guide details the changes that we expect to see over the coming charging years across the following non-commodity costs:

  • Transmission Network Use of System (TNUoS)

  • Balancing Services Use of System (BSUoS)

  • Distribution Use of System (DUoS)

  • Renewables Obligation (RO)

  • Capacity Market (CM)

  • Contracts for Difference (CfD) and Feed-in Tariff (FiT) mechanisms

Download our latest Third Party Costs guide to see our most recent forecasts and understand how upcoming changes to non-electricity costs could affect you.

Download your free copy today