The document analyzes components of a typical electricity invoice, detailing the charges due to transmission, distribution, and government levies, impacting overall energy costs. It highlights various policies like Feed-in Tariff, Renewables Obligation, and Climate Change Levy, which contribute to price increases ranging from 6% to 71% over time. Additionally, it suggests ways to manage costs through smarter consumption and partnerships with energy suppliers.

1. A suppliers Bill – What Lies Within
Andy Eades
Business Development Manager
npower Industrial & Commercial

2. Question……?
What % of an invoice is for the Energy?

3. Components that make up a typical Electricity
Invoice (2014)

4. Components that make up a typical Electricity
Invoice (2014)…..
TLoSS
HDCL
BSUoS
TNUoS
DLoSS DUoS
CCL
RO
EMR
CM
CFD
VAT
DA
DC
FiT £MWh= £ Final Bill

5. Transmission –
BSUoS, TLoSS,
HDCL & TNUoS
Distribution –
DLoSS & DUoS
Third Party
Charges:

6. Transmission (National Grid)
Transmi s s i on Network Use of
Sys t em ( TNUoS) charges
recover t he cos t of i ns t al l i ng
and mai nt ai ni ng t he
t ransmi s s i on sys t em i n
Engl and, Wal es , Scot l and and
of f shore. Transmi s s i on
cus t omers pay a charge based
on whi ch geographi cal zone
t hey are i n, whet her t hey are
generat i on or suppl y and t he
s i ze of t hat generat i on or
suppl y. TNUoS
t ari f f s are publ i shed by 31
January and t ake ef f ec t f rom 1
Apri l each year.
( Dat a provi ded by Nat i onal Gri d 2014)

7. Third Party Charges - Distribution
DNOS (Distribution Network
Operators) own and operate
the distribution network that
bring the Electricity from the
Grid to homes and businesses

8. Example of DNO Charges (2014) : Example Western Power
Distribution (South West)
(Data WPD Published Rates 2014)

9. Government LeviesPolicy:
Feed in Tariff (FiT) - A government initiative to incentivise new investment in small-scale low carbon electricity generation.
Participants are rewarded through payment for electricity generated at guaranteed rates for the next 20-25 years. To fund the scheme,
the costs of FiT will be recovered from all suppliers based on their market share, through the 'Levelisation Process' operated by OFGEM.
Suppliers will then pass this cost through to end users on an estimated basis, with quarterly reconciliations once costs are confirmed.
(0.293pkWh)
Renewables Obligation (RO) - A requirement placed on suppliers to provide a proportion of their supplies from electricity generated
from renewable sources. Extra supplier costs to meet the Obligation are passed on to customers. The obligation began as a requirement
to provide a growing percentage of their supplies from ‘green’ sources. It has since become an order to provide an annually increasing
number of ROCs per MWh supplied (0.97pkWh)
Climate Change Levy (CCL) - Tax in applied in the UK on the business use of energy that was implemented April 2001. The GB levy
applies to gas, electricity, coal and LPG, but not oil. Rates can be changed periodically by the GB Government. Renewables are exempt.
(0.541pkWh)

10. ENERGY COSTS ARE FORECAST TO RISE
71
79
78
26 28 29
14
4
37
15
55
25
27
85
75
2013 2020 2030
29
116
94
29
133
103
RWE npower 10/08/14 10
Impact of policy costs on electricity prices
policies account for
6-19% of prices
increases to 19-47% Increases to 32-71%
Estimated average price
without policies
Estimated average price
with policies
2013
2020
2030
Estimated impact
of policies
1 1 1
2013
2020
2030
2013
2020
2030
Gas
£/MWh
Electricity
£/MWh

11. Costs added up
Example Costs
Energy 6.3p kWh
Transmission 0.97p kWh
Distribution 2.8p kWh
Supplier Fee 0.3p kWh
Government Levies 1.8p kWh
Total 12.17p kWh

12. How can we mitigate and manage the cost?
SMARTER
CONSUME LESS PARTICIPATION COST CERTAINTY
CONSUMPTION
WORK IN PARTNERSHIP WITH WORK IN PARTNERSHIP WITH Y YOOUURR E ENNEERRGGYY S SUUPPPPLLIEIERR

13. Thanks You……..
Any Ques t i ons ?