Electric:

Depending on the meter type your bill could have 1, 2 or 3 rates.

Single rate tariffs are the same unit rate’s charged at any time of day or week.

2 rate tariffs are typically day and night rates. The night rate typically kicks in between 11am and 8am but it is supplier dependent. The day rate is usually slightly higher than a single rate tariff and the night rate much cheaper so it’s more beneficial for you if you are consuming a lot of energy through the night. If you tend not to, the single tariff may be better for you.

3 rates are usually made up of day, night and weekend. Again this is like the 2 rate tariff but includes discounts for weekends so if your business is operating over the evenings on the weekend, this may be best for you.

Unit Rate – This is charged in pence per kilowatt hour you use. 

Standing Charge – This is a fixed daily amount that is paid to your supplier regardless of how much energy is used. It covers the costs of maintaining the supply network, meter readings, supporting governmental schemes and failed suppliers leaving the market. Think of it as a line rental for your electricity. It’s also worth noting that the bigger your meter, the higher the standing charge is likely to be.

Capacity Charge – Also known as Availability Charges, these are typically seen on larger meters like half hourly’s and is relates to the energy that is allocated and reserved on the network for your supply.

Transmission Charges – Also known as Transmission Network Use of System (TNUoS) is a charge to recover the costs incurred to build, maintain, operate and improve the transmission systems. The transmission networks are what actually delivers electricity to your site.

Distribution Charges -  Also known as Distribution Use of System (DUoS) is a charge to cover the costs of building, maintaining and operating the local electricity wires which deliver electricity to your building.

MOP Charges – Meter Operating Provider Charges are in place to provide and maintain your electricity meter and communications.

DC/DA Charges – Data Collector Charges are the company responsible for the collection and processing of your data and delivering that to the Data Aggregator who then verifies and processes the data to the supplier.

Reactive Power Charge – This is a charge directly from the Network Owner and refers to the difference between the electricity supplied by them and the electricity converted into useful power. If the site has a lot of power being wasted, more current needs to flow to provide the same output, which is where charges come into effect.

Settlement Agency Charge – This is another phrase for MOP/DC/DA charges when you haven’t appointed a provider yourselves.

Climate Charge – This is an environmental tax charged on the energy that a business uses.

Gas:

Unit Rate – Unlike Electric, Gas suppliers will only offer you one unit rate which is a charge in pence per kilowatt hour for the amount of gas you use. There is no different rates for usage on evenings and weekends.

Standing Charge – This is a fixed daily amount that is paid to your supplier regardless of how much energy is used. It covers the costs of maintaining the supply network, meter readings, supporting governmental schemes. Think of it as a line rental for your electricity. It’s also worth noting that the bigger your meter, the higher the standing charge is likely to be. Unlike electric, it doesn’t incorporate the cost of failed suppliers leaving the market.

Climate Charge – This is an environmental tax charged on the energy that a business uses.