ScottishPower has set out revised values for each third party cost inside its flexi-2023 variable tariff, with the new figures applying from 1 October 20231. The page lists the same cost components across three dates, 1st January 2023, 1st April 2023 and 1st October 2023, and shows which of them feed into unit rates and which into daily standing charges1.
The components are set by different bodies. Renewable Obligation costs are set by "UK Government and Ofgem" and tracked against "the costs included in the price cap set by Ofgem"1. Capacity Market costs come "Via industry capacity market auctions"1. Balancing Services Use of System costs are set by National Grid and tracked against "National Grid's latest forecast"1. Distribution Use of System charges are levied by the Distribution Network Operators1.
For single rate electricity in the Eastern region, the Renewable Obligation unit rate is unchanged at 2.768 pence per kWh on 1 October, having risen from 2.596 pence on 1 January1. Capacity Market falls to 0.566 pence from 0.592 pence1. Balancing Services Use of System rises to 1.559 pence from 1.49 pence1. Distribution Use of System moves to 2.253 pence per kWh from 2.302 pence, while its standing charge stays at 7.68 pence per day1. Transmission Network Use of System holds its standing charge at 11.93 pence per day and its unit rate at 0.007 pence per kWh1. Smart meter costs, covering the Data Communication Company and Smart Energy GB, fall to 4.04 pence per day from 4.17 pence1.
Gas components also change. The Gas Transportation charge rises to 1.333 pence per kWh from 1.314 pence, the Green Gas Levy stays at 0.12 pence per day, and gas smart meter costs fall to 3.10 pence per day from 3.19 pence1.
| Component (Eastern, single rate electricity) | 1 Apr 2023 | 1 Oct 2023 |
|---|---|---|
| Renewable Obligation (p/kWh) | 2.768 | 2.768 |
| Capacity Market (p/kWh) | 0.592 | 0.566 |
| Balancing Services Use of System (p/kWh) | 1.49 | 1.559 |
| Distribution Use of System (p/kWh) | 2.302 | 2.253 |
| Distribution Use of System (p/day) | 7.68 | 7.68 |
| Transmission Network Use of System (p/day) | 11.93 | 11.93 |
| Smart meter costs (p/day) | 4.17 | 4.04 |
"Linked to the costs included in the price cap set by Ofgem"
Why it matters for households
These are the building blocks of a bill rather than the final price. A household on flexi-2023 pays a unit rate for each kilowatt hour used and a standing charge for each day of supply, and the third party costs above sit inside those two numbers1. Some components are charged by the day regardless of consumption, so they are paid even in a month of near zero use, which is the point at which a home's ability to cut its bill by cutting its consumption runs out. Others scale with usage, so the more electricity or gas a home draws, the more of them it pays. The split between the two shapes what energy independence looks like in practice: reducing demand lowers the unit rate element but leaves the daily element untouched. The figures also show that not every component moves in the same direction at the same time, with some falling and others rising between April and October1.
What happens next
The page records values for 1st October 2023 and describes the costs as variable costs that may change each quarter1. No further quarterly values beyond 1 October 2023 are given1.
Sources1 cited
- flexi-2023-charges | Gas and Electricity Company | ScottishPower, scottishpower.co.uk