Last week we hosted a cross-community briefing call on energy non-commodity costs with Energy UK.
Energy non-commodity charges currently make up around 60% of overall charges for electricity and are expected to rise substantially in future years, with potentially significant impact on retailers’ ability to keep prices down for customers.
For the first part of the session, Rachel Cary and Ed Rees from Energy UK provided an overview of energy costs and business decarbonisation. They covered the breakdown of the bill components, the outlook for planned increases in non-commodity costs and how the policy framework can better drive decarbonisation – more detail on the slides below.
In the second half of the session, a representative from Morrisons provided a retailer perspective on the issue. We discussed the burden on business users, how these rising costs might be avertable, and the possible approaches to address the issue whilst delivering net zero.
Overall, there were some clear areas of shared interest where we will be looking to engage with Energy UK going forward – more details on this coming soon.
