Whilst many companies and households are driving towards a more energy-efficient way of life, the current electricity network must still be maintained, monitored and modernised. It is often these ‘residual costs’ that are overlooked by many. At current, such costs are absorbed through the unit rate and consumption for those in households and small businesses; whilst larger businesses are charged through both unit consumption and Triad charges (the charge during peak power demand times).
The Targeted Charging Review (TCR) is due to come to play from April 2021 with the intention of levelling the playing field for all businesses whether the use of demand-side reduction activities (DSR) is used or not. Ofgem is set to implement TCR to help companies that may not necessarily have the funds to implement DSR which at current results in themselves fronting the difference that other energy-efficient companies have swerved.
What does this mean for you?
Depending on the company size, household capacity or voltage use, you will be placed in one of four bands. Such bands are yet to have a fixed price attached, however, larger companies currently using DSR techniques are expected to have an increase in their annual bill, whilst smaller entities are likely to have a small deduction.
How can Energycentric help?
From a business forefront, such a scheme hinders the hard work taken to implement alternative energy sources. However, the targeted charging review looks at the larger picture; although DSR techniques benefit both the company and environment, it does not necessarily do so for the national grid and the charges in question. Such changes do not fluctuate alongside voltage; therefore, they must be swallowed by someone, and at present, that person is the smaller, less capable in terms of DSR techniques companies.
Each company’s utility bills are as unique as their product. We at Energycentric can help determine the most efficient way of lowering your energy usage without jeopardising the company operations or profits. Whilst companies may be left with the unease of unknown charges, Energycentric can bring some light by helping develop a plan to reduce power usage and bring down any potential risk of exceeding maximum capacity.
For those clients looking to alter their energy consumption in accordance with the new targeted charging review please call the team on 01708 765555 or email firstname.lastname@example.org.