The Report Lays out the Growing Burden of Energy Non-commodity costs on Retail
We have now finalised our report, Counting the Cost: The Growing Burden of Energy NCCs on Retail, which examines the increasing impact of Non-Commodity Charges (NCCs) on retailers' electricity bills. The report can be accessed below.
Thankyou to members who were able to provide evidence and support our energy survey.
The report finds that electricity costs are forecast to increase from £2.72bn in 2025 to £3.16bn in 2026, a rise of £440 million (16%), despite energy consumption remaining broadly unchanged. The increase is being driven by rising government levies and network charges, rather than wholesale energy prices, with NCCs now accounting for up to two-thirds of retailers' electricity bills.
The report will underpin our engagement with government over the coming months and will form part of our evidence ahead of the Budget.
It sets out a number of policy recommendations, including extending eligibility for energy cost relief schemes to electricity-intensive retailers, reforming the way renewable policy and network costs are recovered through electricity bills, and improving the predictability of network charges. We will continue to use the report's findings in discussions with ministers and officials as we press for reforms that improve the competitiveness of the retail industry and reduce unnecessary cost pressures on businesses.
We will keep members updated on work and advocacy on tackling rising energy costs.
