Third Party Costs, what are they & why do they matter?

Third Party Costs make up 60% of your total bill. So isn't it time to find out more about them?

To keep energy simple and help you control your consumption and costs, we've focused many of our posts on a better understanding of the industry and how it affects your business.

Given that non-energy costs outweigh the 40% of the bill total that you pay for electricity, it’s important to find out more about the range of TPCs included.

The Government has introduced some of them, as part of its plans to ensure the UK reaches its carbon reduction targets. For example, to support and incentivise investment in renewable power, the charges include Renewables Obligation (RO) and Contracts for Difference (CfD).

There are also charges dedicated to operating and maintaining the country’s power distribution system (National Grid) such as Balancing Services Use of System (BSUoS), Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS).

As well as understanding why you’re paying these charges and what they mean, it’s also important to stay informed on how they’re changing. Our guide to TPCs gives you the details you need, plus predictions about the likely cost increases across the year. With this information to hand, you’ll be in a much better position to accurately forecast for these costs in your energy budget.

If you have any questions about TPCs, or want to chat about improving your energy management, talk to our friendly experts on 01473 725943 or

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