ScottishPower has set out revised values for each third party cost inside its flexi-2023 unit rates and standing charges, effective from 1 April 2023, on a page that also lists the values applying from 1 January 2023 and those due from 1 October 20231. The costs are broken down by region and by whether they fall on the unit rate in pence per kWh or on the daily standing charge in pence per day1.
The clearest structural change is Transmission Network Use of System, a National Grid charge for managing and maintaining the network that carries electricity from large power stations to the local distribution system1. In the Eastern single rate table it moves from 1.248p per kWh on 1 January 2023 to 0.008p per kWh on 1 April 2023, while the standing charge element rises from 0.00p to 11.93p per day1. The same 11.93p per day figure appears from 1 April in the Eastern multi rate table and in the East Midlands tables1.
Other components move in both directions. In the Eastern single rate table, Renewable Obligation rises from 2.596p to 2.768p per kWh, Capacity Market from 0.378p to 0.592p, Balancing Services Use of System from 1.433p to 1.49p, and Distribution Use of System on the unit rate from 0.987p to 2.302p, while Distribution Use of System on the standing charge falls from 26.09p to 7.68p per day1. Smart meter costs, covering the Data Communication Company and Smart Energy GB, rise from 3.84p to 4.17p per day1.
On gas, the Smart Meter Costs standing charge rises from 2.95p to 3.19p per day, the Gas Transportation charge unit rate falls from 1.356p to 1.314p per kWh, and the Green Gas Levy standing charge falls from 0.58p to 0.12p per day1.
ScottishPower describes the page as a breakdown of variable costs that may change each quarter, and states for most lines that the cost is linked to the costs included in the price cap set by Ofgem1.
"Linked to the costs included in the price cap set by Ofgem"
| Eastern single rate electricity | 1 Jan 2023 | 1 Apr 2023 |
|---|---|---|
| Renewable Obligation (p per kWh) | 2.596 | 2.768 |
| Capacity Market (p per kWh) | 0.378 | 0.592 |
| Balancing Services Use of System (p per kWh) | 1.433 | 1.49 |
| Distribution Use of System (p per day) | 26.09 | 7.68 |
| Distribution Use of System (p per kWh) | 0.987 | 2.302 |
| Transmission Network Use of System (p per day) | 0.00 | 11.93 |
| Transmission Network Use of System (p per kWh) | 1.248 | 0.008 |
| Smart Meter Costs (p per day) | 3.84 | 4.17 |
Why it matters for households
These are the third party components inside a variable tariff, not the full unit rate or standing charge a household pays, so the figures show how the fixed daily element of a bill is built up rather than what the final bill will be1. The shift of Transmission Network Use of System into the standing charge means a larger part of the daily charge is now tied to a network cost that does not fall when a household uses less electricity, while the corresponding unit rate element becomes close to zero1. For a home weighing up standing charges on energy bills and how they affect the case for no standing charge tariffs, the split between unit rate and daily charge is the part that changes the arithmetic of reducing consumption. The wider context of standing charge reform and why daily charges sit where they do is covered in the site's tariffs hub and bills and price cap hub.
What happens next
The page lists a further set of values applying from 1 October 2023, including Transmission Network Use of System remaining at 11.93p per day and Renewable Obligation holding at 2.768p per kWh in the Eastern single rate table1. No further changes beyond that date are given1.
Sources1 cited
- flexi-2023-charges | Gas and Electricity Company | ScottishPower, scottishpower.co.uk