04/09/2025
Explaining to customers all the different factors that affect the price they pay for their energy is always a tricky one, even for established brokers.
On a basic level, charges can largely be broken down into two categories:
๐ต Commodity cost = The wholesale cost of the power/gas
๐ Non-commodity costs = Everything else
However, the myriad different non-commodity (or TCP) charges โ and why business energy customers have to pay them โ are far less easy to understand.
With Ofgem's recent publication of its RIIO-3 Draft Determinations Impact Assessment, we've updated our explainer article on business energy charges to include the proposed increases to TNUoS charges anticipated from 2026.
We also take a look at exactly what each of the different charges that go into the price of business electricity supply are, why they are there, and - importantly - how much they each account for of the total electricity bill.
๐ฐ Read "Business Energy Charges Explained" over on the blog* https://www.onlinedirect.co.uk/blog/business-energy-charges-explained/
*Don't forget to bookmark it for easy access next time your customers ask you for a breakdown of the charges they see on their bill!
A breakdown of the different charges that can be found on business energy bills, why they are there, and how much they each account for of the total bill.