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Flexi variable costs updated for the quarter from 1 July 2022

ScottishPower has published the variable cost components of its Flexi tariff for the quarter beginning 1 July 2022, with Balancing Services Use of System falling and several regional distribution standing charges changing.

A newspaper on a kitchen table beside a model of energy bills and the price cap

ScottishPower has updated the breakdown of variable costs that sit inside its Flexi product for the quarter starting 1 July 2022, published on its Flexi previous charges page1. Most components were held at the levels set on 1 April 2022, but Balancing Services Use of System fell and some regional Distribution Use of System standing charges moved1.

Balancing Services Use of System, the National Grid operating cost of keeping enough electricity in the network to meet demand, dropped from 1.164 pence per kWh to 0.843 pence per kWh on 1 July, before rising to 1.433 pence per kWh on 1 October1. The supplier states this component is linked to National Grid's latest forecast rather than to the price cap1.

Regional Distribution Use of System standing charges, set by the Distribution Network Operators, changed in some areas. In the Eastern region the charge stayed at 16.23 pence per day across all three quarters, while in the East Midlands it was 22.58 pence per day throughout1. Other components were unchanged: the gas transportation charge held at 1.395 pence per kWh, the Green Gas Levy at 0.58 pence per day, and Assistance for Areas with High Electricity Distribution Costs at 0.042 pence per kWh1.

"Unit Rate (pence per kWh) | 1.164 | 0.843 | 1.433"
ScottishPower, Flexi previous charges1

The figures cover single rate electricity, multi rate electricity and gas, with columns for 1 April 2022, 1 July 2022 and 1 October 20221. The page does not state the size of the change to a household's total bill, and no overall Flexi unit rate or standing charge for the quarter has been reported1.

Component1 April 20221 July 20221 October 2022
Balancing Services Use of System (p/kWh)1.1640.8431.433
Gas transportation charge (p/kWh)1.3951.3951.356
Green Gas Levy (p/day)0.580.580.576
Distribution Use of System, Eastern (p/day)16.2316.2316.23
Distribution Use of System, East Midlands (p/day)22.5822.5822.58

Why it matters for households

The variable costs listed here are the network, environmental and balancing charges that sit underneath the unit rate and standing charges a household pays. They are not the whole tariff, but they are the part that can move each quarter independently of the wholesale price of energy, and they differ by region because the distribution networks differ1.

For a home's energy independence, the practical point is that a fall in one component does not necessarily reduce what is paid overall, because other components can rise in the same quarter or the next1. The 1 October column shows Balancing Services Use of System climbing back above its April level, which means the direction of travel within a single year can reverse between quarters1.

What happens next

The page sets out figures for the quarter from 1 October 2022, when Balancing Services Use of System is listed at 1.433 pence per kWh and the gas transportation charge at 1.356 pence per kWh1. No further quarterly update beyond that date has been reported1.

Sources1 cited
  1. flexi-previous-charges | Gas and Electricity Company | ScottishPower, scottishpower.co.uk