ScottishPower has set out the variable costs that make up its 2023 Flexi product, with the first of three quarterly sets of values taking effect on 1 January 20231. The page lists values for 1 January 2023, 1 April 2023 and 1 October 2023, and covers single rate electricity, multi rate electricity and gas1.
The costs are broken down by who sets them and how they are tracked. Renewable Obligation, Capacity Market, Distribution Use of System, Transmission Network Use of System, smart meter costs and the Assistance for Areas with High Electricity Distribution Costs charge are all linked to the costs included in the price cap set by Ofgem1. Balancing Services Use of System is linked to National Grid's latest forecast1.
"Linked to the costs included in the price cap set by Ofgem"
For single rate electricity in the Eastern area, the Renewable Obligation unit rate is 2.596p per kWh from 1 January 2023, rising to 2.768p from 1 April and staying at 2.768p from 1 October1. The Capacity Market unit rate is 0.378p, then 0.592p, then 0.566p1. Balancing Services Use of System is 1.433p, 1.49p and 1.559p1. Distribution Use of System carries a standing charge of 26.09p per day from 1 January, falling to 7.68p from 1 April and staying at 7.68p from 1 October, plus a unit rate of 0.987p, 2.302p and 2.253p1.
| Cost (Eastern, single rate electricity) | 1 Jan 2023 | 1 Apr 2023 | 1 Oct 2023 |
|---|---|---|---|
| Renewable Obligation (p per kWh) | 2.596 | 2.768 | 2.768 |
| Capacity Market (p per kWh) | 0.378 | 0.592 | 0.566 |
| Balancing Services Use of System (p per kWh) | 1.433 | 1.49 | 1.559 |
| Distribution Use of System (p per day) | 26.09 | 7.68 | 7.68 |
| Distribution Use of System (p per kWh) | 0.987 | 2.302 | 2.253 |
Gas rates are listed separately. The Gas Transportation charge unit rate is 1.356p per kWh from 1 January, 1.314p from 1 April and 1.333p from 1 October1. The Green Gas Levy standing charge is 0.58p per day, then 0.12p, then 0.12p1. Smart meter costs for the Data Communication Company and Smart Energy GB are 2.95p per day, 3.19p and 3.10p on gas1.
Why it matters for households
The Flexi product separates the wholesale price of energy from the network, policy and social costs that sit alongside it. Those separate costs are passed through and can change each quarter, so the amount a household pays per unit and per day can move even when the headline energy price does not. Several of the values change sharply between quarters: the Eastern single rate Distribution Use of System standing charge falls from 26.09p to 7.68p per day between January and April, while its unit rate rises from 0.987p to 2.302p per kWh over the same period1. For a household, the split between standing charge and unit rate affects how much of a bill is fixed regardless of use and how much follows consumption, which in turn shapes the case for reducing usage or generating and storing power at home. The page does not state how these values combine into a final tariff, and no total unit rate or standing charge for the product has been reported1.
What happens next
The page records values for 1 April 2023 and 1 October 2023 alongside those for 1 January 20231. It does not state when the later sets will be confirmed or whether they may change before they take effect; that has not been reported1. Households comparing tariffs can use the published breakdown to see which elements are set by government, Ofgem, National Grid and the distribution network operators1.
Sources1 cited
- flexi-2023-charges | Gas and Electricity Company | ScottishPower, scottishpower.co.uk