Please note should you be entitled for CCL reduction a new Certificate will need to be completed each time you transfer to an alternative supplier. The Certificate can be obtained from HM Customs and Excise (0845 0101 9000). The 'original' documentation must be forwarded direct to the supplier.
Why have business electricity prices increased?
Increases are mainly linked to faster than expected depletion in UK sources of gas. This has led to tighter gas supply margins and to more reliance on gas imports. These have both contributed to higher wholesale gas prices. Much of the electricity in the UK is produced using gas and so increases in gas prices result in similar increases in business electricity prices.
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Are more business electricity price hikes expected?
Yes.
The major business energy suppliers are facing significant pressure as a result of lower margins in electricity due to escalating wholesale costs. They will need to keep returning their massive profits to their shareholders. With this in mind its widely predicted that the major suppliers will continue to increase business electricity prices over the coming months.
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Is changing business electricity suppliers a hassle?
No, not when you arrange to transfer through Onetalk. We ensure that all the correct paperwork is done, including,
- Provide termination notice with your current supplier
- Arrange transfer to your new supplier
- Manage the transfer process
Are there any costs in switching
No. There are not any administration charges involved in switching supply, your business can start saving money on its electricity today.
Is there any interruption to electricity supply when changing supplier?
No,your new supplier will continue to use exactly the same wires and cables as your business currently uses. We will arrange the transfer of your business electricity and the only change you will notice is the name at the top of the bill and the electricity lower price!
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Who currently supplies my electricity?
You can find this information on your most recent electricity bill. Alternatively, with your permission we can find that out for you.
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What is my Electricity Supply Reference Number and how do I find it?
Your electricity Supply Reference Number is the unique identifying number for the electricity meter at your business premises. It can be found on your electricity bill. If you cannot find it, again, with your permission will be able to obtain the number. See the flash image above.
What do I do if I have a power cut?
It does not matter which company you switch from, the same emergency procedure applies. You should phone your regional electricity distribution company if you think there is a supply or safety problem.
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Where can I go for help on reducing my energy bills?
Efficient use of energy at your business is important for you to consider, since this can both save you money and help the environment.
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You may be eligible for a grant from the government. You can obtain information on energy efficiency programmes from the Energy Savings Trust (www.est.org.uk) or from your local Energy Efficiency Advice Centre on 0800 512 012.
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Who are Ofgem?
Ofgem, the Office of Gas and Electricity Markets, is the independent regulator of the gas and electricity industries. Ofgem was formed in June 1999 by combining the functions of the former Office of Gas Supply (OFGAS) and the Office of Electricity Regulation (OFFER). The body was set up by the government to protect the interests of all gas and electricity customers, and to promote competition in the supply and regulation of the gas and electricity industries throughout Great Britain. Ofgem can be contacted on 020 7901 7000, or by post at Ofgem, 9 Millbank, London SW1P 3GE. You can also visit their website at www.ofgem.gov.uk.
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Business electricity markets
Electricity markets have been and continue to be developed as a result of the deregulation of electricity markets around the world. This process has often gone on in parallel with the deregulation of natural gas markets. A key event for electricity markets occurred in 1990 when the UK Government under Margaret Thatcher privatised the UK Electricity Supply Industry in England and Wales. The process followed by the British was then used as a model or at least a catalyst for the deregulation of several other countries and regional markets.
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However, in many of these other instances the market deregulation occurred without the widespread privatisation that characterised the UK example. Indifferent deregulation processes the institutions and market designs were often very different but many of the underlying concepts were the same. These are: separate the contestable functions of generation and retail from the natural monopoly functions of transmission and distribution; and establish a wholesale electricity market and a retail electricity market. The role of the wholesale market being to allow trading between generators, retailers and other financial intermediaries both for short-term delivery of electricity and for future delivery periods.
What is electricity transmission?
Electricity power transmission is one process in the delivery of electricity to consumers. The term refers to the bulk transfer of electrical power from place to place.Typically, power transmission is between the power plant and a substation near a populated area. This is distinct from electricity distribution, which is concerned with the delivery from the substation to the consumers. Due to the large amount of power involved, transmission normally takes place at high voltage (110 kV or above). Electricity is usually sent over long distance through overhead power transmission lines. Underground power transmission is used only in densely populated areas (such as large cities) because of the high capacitive and resistive losses incurred. A power transmission system is sometimes referred to colloquially as a "grid".
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However, for reasons of economy, the network is rarely a grid (a fully connected network) in the mathematical sense. Redundant paths and lines are provided so that power can be routed from any power plant to any load center, through a variety of routes, based on the economics of the transmission path and the cost of power.
Much analysis is done by transmission companies to determine the maximum reliable capacity of each line, which, due to system stability considerations, may be less than the physical limit of the line,
What is electricity distribution?
Electricity distribution is the penultimate process in the delivery of electricity, in other words the part between transmission and user purchase from an electricity retailer.
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It is generally considered to include medium-voltage (less than 50 kV) power lines, low-voltage electrical substations and pole-mounted transformers, low voltage (less than 1000 V) distribution wiring and sometimes electricity meters.
Who are Energywatch and what do they do?
Energywatch is the independent watchdog for gas and electricity consumers. They were created in November 2000, as part of the Utilities Act, to protect and promote the interests of gas and electricity consumers in England, Scotland and Wales. They are completely independent of the energy industry, and the energy regulator Ofgem.
They provide free, impartial advice on a range of energy issues. They also take up complaints on behalf of consumers who are experiencing difficulty in resolving problems directly with their energy suppliers.
Energywatch works closely with the regulator, Ofgem, to ensure that company performance issues are monitored and where appropriate, the evidence is provided to trigger investigations and/or enforcement action.
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What is a standing charge?
A standing charge is a fixed amount you pay for every day you are connected to an electricity network.
Standing charges are used to cover costs like meter reading, maintenance and the cost of keeping you connected to the network.
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I think my electricity meter is faulty - what should I do?
Electricity meters usually work for up to 20 years without any problems.
Faults are not common and if you think there might be a problem with yourmeter, you should check everything else first. If you still think there may be a problem with your meter, you should ask your
supplier to get it checked.
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What is a Half Hourly Meter/Supply?
Half Hourly Meter/Supply have an MPAN/Supply number that starts with 00.
Half Hourly Meter/Supply (HH) - A Half Hourly meter is a special type of electricity meter which records a reading each half hour through the year. There are two types of HH meter - The first stores half hour readings which can be downloaded by a meter reader attending the site every six months or so. The second communicates readings directly to a central computer database by telephone /modem; meter readings are transmitted every day.
HH metering costs are about:
£400-800 install
£500-1000 annual operation charge
Since April 1998, HH meters have been mandatory for all sites over 100 kVa, and voluntary for sites under 100 kVa.
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What is a Kilowatt-Hour (kWh)?
Kilowatt-Hour - (kWh) - The basic unit of electric energy for which most customers are charged. The amount of electricity used by ten 100-watt light bulbs left on for one hour. It is the measurement unit of consumption on your business electricity bill and charged on a pence per unit basis.
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Unit - what is this on my business electricity bill?
Unit - the use/consumption of electricity is measured in units. A unit is a kilowatthour, that is equivalent to 1000 watts of electricity being used for one hour.
What is a three phase power supply?
Three-Phase Power - A type of power supply usually used for operating heavy loads. The three conductors of an HV system or (confusingly) the four conductors of an LV system (three live and a neutral).
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Kilo-Volt Amperes (KVA)?
Kilo-Volt Amperes (KVA) - A measure of electrical power. The capacity of a supply is measured in KVA's.
A volt-ampere in electrical terms, means the amount of apparent power in an alternating current circuit equal to a current of one ampere at an emf of one volt. It is dimensionally equivalent to watts. An example might be the purchase of an AC transformer rated in electrical terms by volt amperes.
Hence;
- 10 kVA = 10,000 watts capability where the SI prefix k equals kilo
- 10 MVA = 10,000,000 watts capability where M equals mega
What is Maximum Demand (MD)?
Maximum Demand (MD) - Highest demand. Usually, taken as the highest demand averaged for 30 minutes (termed as Half Hour Integration). Large business consumers may be liable to pay for an extra charge for their maximum demand within each billing cycle (normally one month). This is shown as a separate charge on the bill and forms part of the tariff agreement of a contract.
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Profile Class - what is it?
Profile - means a pattern of consumption of electricity, by half hour, across a year. In electricity, the profile of a consumer refers to their supply requirements and consequently, their metering type. The profile of a consumer is identified by a series of numbers shown on the top line of the supply number for the site. Profile Class – Although the wholesale electricity market trades on a half-hourly basis, for customers with less than 100kW peak demand, representative load profiles will be used as a means of estimating your demand. There are six profiles for business electricity customers with less than 100kW peak demand.
These are:
- unrestricted
- restricted
- maximum demand customers - subdivided into four profiles by load factor range.
The profiles are provided for specific days of the week and seasons and allow for the influence of temperature and time of sunset, since electricity demand is sensitive to temperature changes. The first number on the top line of the supply number on a bill indicates which profile has been allocated to your meter. This is primarily for suppliers to identify the type of supply (usually domestic, nondomestic) during the transfer process and also when purchasing electricity from their generator.
Code Profile Class –
- 01 Domestic Unrestricted
- 02 Domestic Economy 7
- 03 Non-Domestic Unrestricted
- 04 Non-Domestic Economy 7 or Restricted
- 05 Non-Domestic Maximum Demand Load Factor Band 0-20%
- 06 Non-Domestic Maximum Demand Load Factor Band 20-30%
- 07 Non-Domestic Maximum Demand Load Factor Band 30-40%
- 08 Non-Domestic Maximum Demand Load Factor Band Over 40%
What compensation can my business claim for a recent power cut?
There is currently no statutory compensation for loss of earnings as a result of a power cut - planned or otherwise.
A power company will usually carry out work on the electricity network for emergencies and essential maintenance. It is in their interest to disrupt power supplies as little as possible as they will be losing revenue from dozens of power supplies at this time. They also argue that a short planned outage now is better than a potentially longer unplanned one due to failed equipment.
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That said, should the company fail to notify a consumer of a planned outage at least 48 hours before they are carried out, then they should make a Guaranteed Standard payment. Guaranteed Standards are standards an energy company has to meet when carrying out functions of their business. Should they fail to meet these standards then compensation is usually paid to the consumer. In the case of a failure to notify of a planned outage a business would receive £40.
Contract types for business electricity consumers?
Industrial & Commercial electricity contracts are usually for a fixed amount of time. A contract could be for a set amount of years, normally between 1-5 years for a small to medium business. If you wish to leave this type of contract then you can only do so within time limits near the renewal date of the contract. If a you wish to leave before then, a termination fee will nearly always be applied.
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Deemed Contracts or `Out of Contract` what are they?
An energy supplier supplies a property and not an individual. Therefore, when you move into a property you are under contract with the existing supplier to the property. This is known as a deemed contract or out of contract and it will remain so until you either contact the existing supplier to agree a new contract or until you nominate a new supplier.
Remember: Being on a deemed contract is more expensive as the supplier will charge a higher tariff rate. It is in your interest to agree a contract with a supplier as soon as possible - contact us for an immediate quote.The rules surrounding a deemed contract are detailed in a supplier's electricity
supply licence.
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What are Renewable Obligations?
Under the Renewables Obligation, electricity suppliers must supply a specific proportion of their electricity from renewable sources (the proportion currently stands at 4%). However, electricity suppliers can choose to buy out of their obligation and must pay a specific cost per MWh of electricity. The cost for this is set by Ofgem and is currently around £30 per Mega Watt Hour (MWh).
