What are non-commodity energy charges?

Non-commodities energy charges make up the non-energy portion of your bills. These are added costs and taxes to cover the transmission and distribution of energy, overall grid maintenance, and the reduction of businesses’ carbon footprints.

What effect do non-commodities have on my electricity bill?

Non-commodity charges can make up around 60% of the total invoiced cost of electricity and gas. These charges are rising year on year drawing increased attention from industry analysts and business users. A primary driver behind these surging charges is evolving government and environmental policy, which shapes legislative energy measures, along with the growing demands placed on the National Grid.

The table below illustrates the changing balance between wholesale electricity costs and non-energy, commodity costs. It highlights the significant shift since the 2022 energy crisis and the expanding impact of these non-commodity charges on overall business electricity expenses.

Using published rates, inflationary calculations and forward-looking estimates, the table below provides a guide to estimate your future electricity costs – with forward-curve wholesale electricity costs at their current level as of 13 November 2024.

*Please note that the below figures provide mere cost indication and should only be referred to as such.

Energy Purchasing Advice

In a market where gas and electricity prices can shift by up to 40% in just a year, choosing the right energy contract is crucial for any business. More than simply picking an energy supplier, it’s about having a purchasing strategy that manages risk effectively and aligns with your business goals.

At Brownlow, we partner with our clients to develop tailored energy purchasing strategies that protect them from volatility and deliver outstanding results. With our expertise, we make it simple for you to make the best energy decisions for your business—every step of the way.