From April 2022 all businesses will see a change in their non-commodity electricity charges – in layman’s terms their non-energy costs. In particular, the current Triad system will be replaced with a fixed-cost banded voltage charging system.
Why are the reforms being implemented?
Ofgem announced the reforms in 2017 in a bid to create a fairer energy network, the purpose of the TCR is to ensure network charges are cost-reflective and paid by the relevant parties.
What does this mean?
Businesses with Triad avoidance strategies in place will no longer be able to avoid the higher charges, as the system moves to a fixed rate model. And for the few businesses who made additional revenue through exporting on-site generated electricity during Triad periods, they will see their benefits withdrawn completely or at least very severely.
What can you do?
All businesses with a Half Hourly metered supply will be affected and action needs to be taken now to reduce any liability and / or maximise the savings opportunity because the measurement period has already started.
Those most affected by the new legislation are UK businesses, using in excess of 2GWh of electricity per annum (about £250k spend).
If your business is spending £250k+ on electricity and you’d like a free of charge TCR Impact Report to gain a better understanding of how the changes will affect your business, email [email protected].
For more information on TCR visit our EnergyIntel page.
New British Furniture Manufacturers report highlights the need for a sector wide environmental strategy
New British Furniture Manufacturers report highlights the need for a sector wide environmental strategy. Research conducted by Businesswise Solutions and the British Furniture Manufacturers (BFM) showed that 75 per cent of the industry [...]
Businesswise Solutions joins Inspired Energy PLC group We are delighted to announce that Businesswise Solutions (BWS) has joined the Inspired Energy PLC group. Being part of the UK’s largest Commercial and Energy Advisors [...]
How one apprentice found his perfect job at Businesswise... When apprentice James Waring was made redundant from his job at a Lancashire furniture manufacturer he decided to take matters into his own hands. [...]
Iconic wallpaper manufacturer to switch to renewable energy in a bid to slash their carbon footprint. Chief executive of Graham & Brown Andrew Graham MBE said switching their electricity to a renewable supplier [...]