Non-Commodity Charges
To support various renewable energy and environmental schemes, your bills may include extra charges. We can help to make sure you're receiving the correct discounts on your energy bills.
Your green charges do apply to both your gas and electricity bills, however, any renewable subsidies are recovered through your electricity bills rather than gas charges. This is due to nearly every property in the UK being connected to the electric grid whereas a large proportion of households and businesses do not have a connection to gas supplies. Due to the new government schemes, more and more properties being built are not going to have a gas connection.
Your businesses electricity bills are subject to a number of schemes including CCL, Renewable Obligation (RO) and Feed-in-Tariff (FIT) the latter of which are subsidies to both large and small renewable energy generators. CCLs are here to encourage energy efficiency from businesses, and as controls over carbon use are becoming more regulated in the UK these are only set to increase over time.
Main Rates of CCL
Businesses with high energy usage can receive up to a 90% discount on their electricity bills, through Climate Change Agreements. These are voluntary contrast that can target to being an energy efficient businesses with a reduced carbon footprint. In order to qualify for a CCL against electricity charges, you must consume a minimum of 1,000 kWh a month.
If your business uses a large proportion of gas you could save 65% on the utility bill through CCAs. As with electricity discounts, your business must meet certain efficiency criteria and consume a minimum of 4,397kWh of gas per month.
Like green charges are applied differently to households than they are for businesses. VAT is also charged at a different rate, with households paying 5% on their energy bills in comparison to businesses being charged VAT at 20%
