Your unit business electricity price per kWh is not a single cost. It is made up of several separate charges, some set by the supplier and many outside their control. Understanding what sits behind the rate helps you see why quotes differ and where there is room to save.
Wholesale market prices
The cost of the electricity itself, bought by your supplier on the wholesale market. It is usually the largest part of your bill and moves constantly with supply, demand and global events, which is why the timing of your contract matters.
DUoS
Distribution Use of System charges cover the cost of using the local network that delivers electricity to your premises. They are set by the regional distribution operator and vary by location, which is part of why businesses in different regions pay different rates.
TNUoS
Transmission Network Use of System charges cover the cost of the national high voltage grid that moves electricity across the country. They vary by region and by the time of day electricity is used.
BSUoS
Balancing Services Use of System charges cover the cost of keeping supply and demand balanced across the grid second by second. They are recovered from suppliers and passed on within your rate.
Environmental levies
Government policy costs that fund renewable generation and energy schemes, such as the Renewables Obligation, Feed-in Tariff and Contracts for Difference. They are recovered through your bill and are largely fixed regardless of supplier.
Supplier margin
The supplier’s own operating costs and profit, added on top of the charges above. It is one of the key elements open to negotiation, which is where tendering your contract across several suppliers makes a difference.