Electricity billing in the UK

In the UK, an electricity supplier is a retailer of electricity. For each supply point the supplier has to pay the various costs of transmission, distribution, meter operation, data collection, tax etc. The supplier then adds in energy costs and the supplier's own charge.

The Bill

The end consumer pays the supplier according to a tariff agreed between the consumer and supplier. The tariff may include pass-through costs. A pass-through cost is a cost that is charged to the energy supplier, but is then 'passed through' directly to the consumer. The elements in a bill are explained below.

Transmission Charges

Known as Transmission Use of System (TNUoS), this is paid to National Grid to cover the expense of running the grid - either charged as TRIAD for large levels of demand, or based on usage between 4pm and 7pm for smaller demand levels.

Distribution Charge

Known as the Distribution Use of System (DUoS) charge, this is paid to the Distribution Network Operator (DNO) on whose network the meter point is located. It is composed of the following elements:

Availability

Otherwise known as Supply Capacity, this is the maximum kVA allowed for a particular supply in a particular network, and is set before the supply is energised. This maximum capacity is charged every month despite the fact the maximum demand may be lower. If this availability figure is breached, the maximum demand may be charged instead and this figure may stay as the chargeable figure for 12 months depending on the distribution area. Alternatively, it can just return back to the original availability figure.

DUoS Day / Night

Night and Day time slots can vary with every distribution area.

Reactive Power

This also varies with each distribution area, and is charged if the power factor for a supply is deemed too low.

Standing Charge

Climate Change Levy

A p/kWh tax on certain electricity use. Exempt supplies include domestic supplies and supplies using less than the de minimis threshold of 1,000 kWh / month. [cite web | last = HMRC
first = HM Revenue & Customs
authorlink = http://customs.hmrc.gov.uk/
title = Reliefs and special treatments for taxable supplies. HMRC Reference:Notice CCL1/3
work =
publisher =
date = January 2007
url = http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent&id=HMCE_CL_000181&propertyType=document
accessdate = 2008-05-20]

Energy Charge

Settlement Charge

Data Collection Charge

The fee paid to the Data Collector for determining the energy consumption of the supply.

Meter Operation Charge

The fee paid to the meter operator for installing and maintaining the meter.

VAT

VAT is payable at the standard rate unless the supply meets certain conditions (eg. domestic supplies, or supplies that use less than 1000 kWh per month) in which case they are charged at the reduced rate. [cite web | last = HMRC
first = HM Revenue & Customs
authorlink = http://customs.hmrc.gov.uk/
title = Fuel and power. HMRC Reference:Notice 701/19
work =
publisher =
date = January 2002
url = http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000510#P39_2266
accessdate = 2008-05-17]

Changing Supplier

For a non-half-hourly supply, the NHHDC sets the Change of Supplier (CoS) read from a meter read, a customer read or a deemed read. A deemed read is one estimated by the NHHDC based on any previous or subsequent readings. A CoS read can be disputed up to Final Reconciliation. [cite web | last = Elexon
first = Elexon
authorlink = http://www.elexon.co.uk/
title = Elexon Link - Validation of D0300 Replacement Change of Supplier Reads | work =
publisher =
date = February 2004
url = http://www.elexon.co.uk/documents/Publications/Publications_-_Newsletters_-_ELEXON_Link_2004/LINK_issue26.pdf | accessdate = 2008-06-11] Final Reconciliation is 14 months afterwards. If a normal read comes in after Final Reconciliation that is lower than the CoS read, the new supplier should credit the customer.

See also

* Meter Point Administration Number

Notes

* cite web
first =
last =
authorlink = http://www.elexon.co.uk/
title = Simple Guide to Market Entry
url = http://www.elexon.co.uk/documents/Publications/Guidance_Notes/Simple_Guide_to_Market_Entry.pdf | accessdate = 2008-06-10