ScottishPower has set out the quarterly change to the variable costs inside its Flexi product from 1 April 2023, publishing the breakdown of each cost that may change each quarter1. The figures cover single rate electricity, multi rate electricity and gas, and show the network and policy costs that sit underneath the unit rates and daily standing charges a household pays1.
The largest movement is in the Distribution Use of System charge, which the Distribution Network Operators levy for the operation, maintenance and development of the electricity distribution network1. On the single rate table it falls from 26.09 to 7.68 pence per day, and the same 26.09 to 7.68 change appears on the multi rate table1. The unit rate element of the same charge moves the other way, from 0.987 to 2.302 pence per kWh on single rate and from 0.788 to 1.828 pence per kWh on multi rate1.
Transmission Network Use of System, charged by National Grid for managing and maintaining the transmission system, moves to an 11.93 pence per day standing charge on both electricity tables, from 0.00 on single rate and from 0.95 on multi rate1. Its unit rate element falls to 0.008 pence per kWh on both tables, from 1.248 on single rate and from 0.000 on multi rate1.
| Cost | Applied to | 1 Jan 2023 | 1 Apr 2023 |
|---|---|---|---|
| Distribution Use of System (single rate) | Standing charge, pence per day | 26.09 | 7.68 |
| Distribution Use of System (single rate) | Unit rate, pence per kWh | 0.987 | 2.302 |
| Transmission Network Use of System (single rate) | Standing charge, pence per day | 0.00 | 11.93 |
| Transmission Network Use of System (single rate) | Unit rate, pence per kWh | 1.248 | 0.008 |
| Smart Meter Costs, DCC and SEGB | Standing charge, pence per day | 3.84 | 4.17 |
| Renewable Obligation | Unit rate, pence per kWh | 2.596 | 2.768 |
| Capacity Market (single rate) | Unit rate, pence per kWh | 0.378 | 0.592 |
| Balancing Services Use of System (single rate) | Unit rate, pence per kWh | 1.433 | 1.49 |
Other costs on the single rate table also change from 1 April 2023. Renewable Obligation rises from 2.596 to 2.768 pence per kWh, Capacity Market from 0.378 to 0.592 pence per kWh, Balancing Services Use of System from 1.433 to 1.49 pence per kWh, and Assistance for Areas with High Electricity Distribution Costs from 0.041 to 0.046 pence per kWh1. Smart Meter Costs, covering the Data Communication Company and Smart Energy GB, rise from 3.84 to 4.17 pence per day1.
On gas, the Gas Transportation charge falls from 1.356 to 1.314 pence per kWh, the Green Gas Levy standing charge falls from 0.58 to 0.12 pence per day, and Smart Meter Costs rise from 2.95 to 3.19 pence per day1. ScottishPower states that most of these costs are linked to the costs included in the price cap set by Ofgem, with Balancing Services Use of System linked to National Grid's latest forecast and Capacity Market set via industry capacity market auctions1.
"This is a charge by the Distribution Network Operators for the operation, maintenance and development of the UK's electricity distribution network."
Why it matters for households
Standing charges are the part of a bill a household pays regardless of how much energy it uses, so a fall in the distribution element from 26.09 to 7.68 pence per day on the single rate table reduces the fixed daily cost of being connected1. The new transmission standing charge of 11.93 pence per day partly offsets that, and the unit rate element of distribution more than doubles, so the effect on a total bill depends on how much electricity a home uses1. For a household trying to reduce reliance on the grid, lower fixed daily costs make a given level of usage cheaper to cover, while higher unit rates increase the value of cutting consumption or generating power on site. The separate treatment of single rate and multi rate tables also matters for homes weighing up Economy 7 against a single rate tariff, because the two tables carry different distribution and capacity market figures1.
What happens next
The tables also list figures for 1 October 2023, showing Distribution Use of System holding at 7.68 pence per day and Transmission Network Use of System at 11.93 pence per day, with Renewable Obligation unchanged at 2.768 pence per kWh1. ScottishPower describes these as variable costs that may change each quarter1. No further quarterly revision beyond 1 October 2023 is given in the published breakdown1.
Sources1 cited
- flexi-2023-charges | Gas and Electricity Company | ScottishPower, scottishpower.co.uk