So-called non-commodity costs now account for about 45% of the price paid by end consumers in their electricity bills. These are roughly equally split between environmental and social policy costs and network costs. Wholesale electricity costs account for just under 35% of the final bill with the bulk of the rest being the supplier’s operating costs and VAT.
Given the significance of these costs, it is important for businesses to understand what they are in order to be able to budget for them.
This course describes each element of non-commodity costs, detailing their purpose, how they are administered, and their expected future trajectories.