Help / Third party costs for small businesses

Third party costs for small businesses

Your existing contract covers your energy costs (the cost of the power) and your third party costs (the cost of running the Grid and getting the power to you). We have no control over these third party costs since the Government and industry adds them on.

If your contract was agreed before 16th November 2020, these third party costs are passed through to you. To keep things simple if anything changes, we’ll usually only alter your rates once a year.

If your contract was agreed on or after 16th November 2020, your third party costs are fixed. This remains true unless a new charge is introduced, or there’s a change to how third party charges are calculated. These sorts of changes rarely happen and we’ll always let you know if anything does change.

What are the third party costs for?

These costs pay third party organisations for operating the electricity system and maintaining the infrastructure and networks used to transport the energy to you. It’s why they’re sometimes called non-energy charges or third party costs (TPCs).

They also cover the cost of Governmental schemes that support renewable energy generation and mechanisms that maintain security of supply, like the Capacity Market.

TPCs can account for up to 70% of your total electricity bill (50% for gas) and we pass them on to you in the simplest form possible as part of your contract rates.

Here’s a simple guide explaining these costs in greater detail.

Download our third party costs guide