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Non-commodity costs expected to increase 40-45% by 2028
Non-commodity charges make up 60% of a typical business energy bill. They consist of obligatory charges and levies from third parties that are not the commodity (gas/electricity) itself. They include the costs of delivering the energy and balancing the grid, network costs and taxes, and levies to support the development of renewable energy and reduce carbon emissions.
Climate Change Levy (CCL) – one of the biggest levies – is set to increase considerably from April 2019. From 2019, the rates increase to £0.00339 per KWh for gas and £0.00847 per KWh for electricity. Compared to 2017/18 rates, this is an average increase of over 50% in CCL costs. 2020/2021/2022 rates will be announced via the Chancellor’s Autumn Budget 2018.
Non-commodity costs are rising year-on-year. Industry insiders predict a 40-45% increase by 2028. Businesses will feel the impact if this is not planned for and managed carefully. We will continue to monitor the market securing the best energy contracts for our clients. We will also ensure billing is correct to avoid any costly inaccuracies. However, to soften the blow, a long-term energy management strategy is also key.
To find out more how Carbon2018 can support your business in reducing the impact of rising non-commodity costs, get in touch:
Call: 01252 560 379