Electricity billing in the UK
Encyclopedia
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.
(DNO) on whose network the meter point
is located. It is composed of the following elements:
for a supply is deemed too low.
threshold of 1,000 kWh / month.
for determining the energy consumption of the supply.
for installing and maintaining the meter.
is payable at the standard rate unless the supply meets certain conditions (e.g. domestic supplies, or supplies that use less than 1000 kWh per month) in which case they are charged at the reduced rate.
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. Final reconciliation is fourteen 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.
Electricity retailing
Electricity retailing is the final process in the delivery of electricity from generation to the consumer. The other main processes are transmission and distribution.- Beginnings :...
. For each supply point
Meter Point Administration Number
A Meter Point Administration Number, also known as MPAN, Supply Number or S-Number, is a 21-digit reference used in Great Britain to uniquely identify electricity supply points such as individual domestic residences. The gas equivalent is the Meter Point Reference Number...
the supplier has to pay the various costs of transmission, distribution
Distribution Network Operator
Distribution network operators are companies licensed to distribute electricity in Great Britain by the Office of Gas and Electricity Markets....
, 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.RCRC
Residual Cashflow Reallocation Cashflow (RCRC) is to cover balancing costs in the last 15 minutes before gate closure. The charge is for each half-hour, and may be positive or negative.Distribution charge
Known as the Distribution Use of System (DUoS) charge, this is paid to the Distribution Network OperatorDistribution Network Operator
Distribution network operators are companies licensed to distribute electricity in Great Britain by the Office of Gas and Electricity Markets....
(DNO) on whose network the meter point
Meter Point Administration Number
A Meter Point Administration Number, also known as MPAN, Supply Number or S-Number, is a 21-digit reference used in Great Britain to uniquely identify electricity supply points such as individual domestic residences. The gas equivalent is the Meter Point Reference Number...
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 twelve months depending on the distribution area. Alternatively, it can just return back to the original availability figure.Reactive power
This also varies with each distribution area, and is charged if the power factorPower factor
The power factor of an AC electric power system is defined as the ratio of the real power flowing to the load over the apparent power in the circuit, and is a dimensionless number between 0 and 1 . Real power is the capacity of the circuit for performing work in a particular time...
for a supply is deemed too low.
Climate Change Levy
A p/kWh tax on certain electricity use. Exempt supplies include domestic supplies and supplies using less than the de minimisDe minimis
De minimis is a Latin expression meaning about minimal things, normally in the locutions de minimis non curat praetor or de minimis non curat lex .In risk assessment it refers to a level of risk that is too small to be concerned with...
threshold of 1,000 kWh / month.
Data collection charge
The fee paid to the Data CollectorData Collector
In the UK electricity system, a Data Collector is responsible for determining the electricity consumption of supplies.- Half-hourly Data Collector :...
for determining the energy consumption of the supply.
Meter operation charge
The fee paid to the meter operatorMeter operator
A Meter Operator in the UK energy industry is an organization responsible for installing and maintaining electricity and gas meters. Since 1998 there has been full competition for Meter Operators, allowing the Meter Operator for a particular supply to be contracted with the energy supplier by...
for installing and maintaining the meter.
VAT
VATVat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
is payable at the standard rate unless the supply meets certain conditions (e.g. domestic supplies, or supplies that use less than 1000 kWh per month) in which case they are charged at the reduced rate.
Changing supplier
For a non-half-hourly supply, the NHHDCData Collector
In the UK electricity system, a Data Collector is responsible for determining the electricity consumption of supplies.- Half-hourly Data Collector :...
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. Final reconciliation is fourteen 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 NumberMeter Point Administration NumberA Meter Point Administration Number, also known as MPAN, Supply Number or S-Number, is a 21-digit reference used in Great Britain to uniquely identify electricity supply points such as individual domestic residences. The gas equivalent is the Meter Point Reference Number...
- ChellowChellowChellow is open source Energy accounting software for checking the correctness of UK electricity bills.Energy accounting software is a class of software products used for tracking, managing, processing, reporting and analyzing for accuracy of utility bills and energy information...
- UK electricity bill checking software.