Transmission cost changes are coming in 2021

Transmission charges will be different in 2021, and they could be costing you a LOT more

Every business pays for transmission charges. You might not see it separately on your bill, but the costs you pay to your supplier will include transmission charges.

However from April 2021, the way in which these charges are calculated will change. This could lead to you paying more, and your electricity costs rising.

Here’s a video, but you can read more below.

So what’s changing?

If you’re half-hourly metered, your transmission costs are based on the electrical demand you pull during the three national peaks between November and February each year.

The problem with this model is that the periods are unknown upfront, and so suppliers have to guess at what your cost will be.

It also distorts the market because some companies can shift demand outside of these periods, leaving all other businesses to pick up the remaining costs.

The new method places businesses in a banding – similar to how council tax is worked out for houses….

The larger the house – the higher the tax. Whereas in this case – the larger your capacity – the larger the cost.

Pigeon holed

You’ll be banded according to whether you are on the High or Low Voltage network, and also your level of agreed capacity.

You might be thinking.."well what if we’re in the wrong band?", and that’s a sensible question.

We’ll check your projected banding.

Simply send us your latest bill and we’ll check your demand versus capacity, and see if you can reduce your banding for FREE.