Quarterly change to Flexi variable costs from 1 October 2023

ScottishPower has updated the breakdown of variable costs on its Flexi product from 1 October 2023, publishing figures for each region and for single rate electricity, multi rate electricity and gas¹. The page sets out which costs may change each quarter, who sets them and how they are tracked, alongside values for 1 January 2023, 1 April 2023 and 1 October 2023¹.

On the Eastern single rate electricity table, Balancing Services Use of System rose to 1.559 pence per kWh from 1.49 pence per kWh on 1 April 2023 and 1.433 pence per kWh on 1 January 2023¹. The same cost is described as an operating cost to run the UK's national grid, set by National Grid and linked to its latest forecast¹. Distribution Use of System on the same table fell to 2.253 pence per kWh from 2.302 pence per kWh, having been 0.987 pence per kWh in January¹. Capacity Market fell to 0.566 pence per kWh from 0.592 pence per kWh¹.

Several values were unchanged between April and October. Renewable Obligation stayed at 2.768 pence per kWh on the Eastern single rate table, having risen from 2.596 pence per kWh in January¹. The Distribution Use of System standing charge stayed at 7.68 pence per day, down from 26.09 pence per day in January, and the Transmission Network Use of System standing charge stayed at 11.93 pence per day, up from zero in January¹. Smart meter costs covering the Data Communication Company and Smart Energy GB fell to 4.04 pence per day from 4.17 pence per day¹.

On gas, the Gas Transportation charge rose to 1.333 pence per kWh from 1.314 pence per kWh, having been 1.356 pence per kWh in January¹. The Green Gas Levy standing charge stayed at 0.12 pence per day, down from 0.58 pence per day in January, and gas smart meter costs fell to 3.10 pence per day from 3.19 pence per day¹.

The page states how the costs are tracked:

"Linked to the costs included in the price cap set by Ofgem"

Most of the listed costs are attributed to the UK Government and Ofgem, National Grid, the Distribution Network Operators, capacity market auctions, gas transporters, the DCC and SEGB, or the Government¹. The Assistance for Areas with High Electricity Distribution Costs charge, applied to offset distribution network costs for consumers in remote and island communities in Scotland, stayed at 0.046 pence per kWh on the Eastern tables¹.

Why it matters for households

These are the variable, non-energy costs that sit inside a unit rate or standing charge on the Flexi product, separate from the wholesale cost of the energy itself¹. Because they are tracked against the price cap or against National Grid forecasts, they move on a quarterly cycle rather than at the household's choosing¹. For a home on a single rate meter, the October changes are mixed: the balancing cost rose while distribution and capacity market costs fell, so the net effect on a bill depends on how much electricity is used and on the region, since the tables differ by area¹. Households on a multi rate meter, such as an Economy 7 style setup, have separate values for the same costs, so the two meter types do not move identically¹. The standing charge elements, including distribution, transmission and smart meter costs, are charged per day regardless of how much energy is used¹.

What happens next

The page describes these as variable costs that may change each quarter, and gives 1 October 2023 as the latest date in the tables¹. No further quarterly values beyond that date are given¹.

Sources1 cited

1. flexi-2023-charges | Gas and Electricity Company | ScottishPower, scottishpower.co.uk