ScottishPower has updated the breakdown of variable costs that may change each quarter for its Flexi product, with the figures for the quarter beginning 1 October 2022 published alongside the rates that applied from 1 April 2022 and 1 July 20221. The charges cover the network and scheme costs that sit inside a household bill, and the supplier states they are linked either to the costs included in the price cap set by Ofgem or to National Grid's latest forecast1.
The largest movement is in the Balancing Services Use of System charge, an operating cost to run the national grid and balance supply with demand, which rose from 0.843 pence per kWh on 1 July 2022 to 1.433 pence per kWh on 1 October 2022, having been 1.164 pence per kWh on 1 April 20221. Smart meter costs, covering the Data Communication Company and Smart Energy GB, moved from 2.91 pence per day to 2.945 pence per day on the single rate and multi rate electricity tables, and from 3.79 pence per day to 3.84 pence per day on the second standing charge line1.
Other elements moved by small amounts. The Gas Transportation charge fell from 1.395 to 1.356 pence per kWh, the Green Gas Levy from 0.58 to 0.576 pence per day, and Assistance for Areas with High Electricity Distribution Costs from 0.042 to 0.041 pence per kWh1. Distribution Use of System unit rates differ by region: in Eastern they were 2.331 pence per kWh on 1 July 2022 and 2.329 pence per kWh on 1 October 2022, while in the East Midlands they were 1.345 and 1.348 pence per kWh respectively1. The Eastern Distribution Use of System standing charge was unchanged at 16.23 pence per day, and the East Midlands figure was unchanged at 22.58 pence per day1.
"This is an operating cost to run the UK's national grid. It is the cost to 'balance' the system and make sure there is enough electricity in the network to meet demand."
| Cost element | 1 July 2022 | 1 October 2022 |
|---|---|---|
| Balancing Services Use of System (pence per kWh) | 0.843 | 1.433 |
| Smart meter costs, first standing charge line (pence per day) | 2.91 | 2.945 |
| Smart meter costs, second standing charge line (pence per day) | 3.79 | 3.84 |
| Gas Transportation charge (pence per kWh) | 1.395 | 1.356 |
| Green Gas Levy (pence per day) | 0.58 | 0.576 |
| Assistance for Areas with High Electricity Distribution Costs (pence per kWh) | 0.042 | 0.041 |
Why it matters for households
These are the non-energy components of a bill: the wires, pipes, balancing and scheme costs that a supplier passes through rather than the wholesale price of gas or electricity. They are charged either on every unit used or as a fixed daily amount, so a rise in a unit rate element increases the cost of running anything in the home, while a rise in a standing charge is paid regardless of how much is used. The Balancing Services Use of System increase is the clearest example, since it is levied per kWh and therefore scales with consumption. Households wanting to work out what an individual appliance costs to run can use the site's appliance running costs guidance, and the wider framework of capped unit rates and standing charges is set out in the bills and price cap pages.
What happens next
ScottishPower states that these variable costs may change each quarter, and the table shows the position for the quarter beginning 1 October 20221. No further quarterly figures beyond that date are given in the published breakdown.
Sources1 cited
- flexi-previous-charges | Gas and Electricity Company | ScottishPower, scottishpower.co.uk