The spreadsheet on the right shows what charges the supplier will be passing on to you. At first detailed bills like this may seem more complicated but in actual fact I billing this way can be of huge benefit to large energy users. All the costs elements you see in the bill are cost elements that you would normally pay for but they are not broken down for you as they are in most supplier’s bills. This is called a “pass through contract” where all billing elements are broken down. These elements are usually based on last year’s usage in normal contracts – however needless to say you get no benefit for using less during the Peak Red Zone in normal contracts.
The most significant benefit of billing this way is that when coupled with the attached TOU 4 energy reports like the ones above you can see how expensive it is to run electricity during the Red Zone. This is called Peak Demand and runs from 4pm to 9pm on Weekdays. During these hours the network charges a huge premium on electricity because its when the networks resources are at full capacity. People are returning home and putting their TVs and Kettle on and the trains, trams or tubes are running at full capacity. As there is such high demand during these hours the network Duos charges (local network grid) charges a premium which in some cases is up to 2000% more expensive than any other time. These costs are collected by the supplier and passed on to the network (i.e. Pass Through Costs).
The attached energy reports shows energy usage of a HH meters over a 1 week period. I appreciate the red zone often covers peak business hours in some industries like leisure and hotels but by reducing red zone energy consumption between these hours it could have a huge impact on your energy bills if you can negotiate a Pass Through Contract with the supplier.
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