Opus increase Prices Rates for Existing Business Customers

The Below News has been taken directly from the Opus website

Increase in Regulatory Charges

Why have these charges increased?

The UK regulator, Ofgem, has agreed that the transmission and distribution companies can increase their charges in order to fund future investment in the UK electricity network. This enables network operators to invest in upgrades to the systems and to support the connection of new renewable generators to the network.

What is Climate Change Levy?

Climate Change Levy (CCL) is a tax applied to UK businesses who consume more than 12,000 kilowatt-hours (kWh) of electricity per year or more than 53,000 kilowatt-hours (kWh) of gas per year.

The levy is collected by electricity suppliers and is passed to the Government. Its purpose is to encourage businesses to be more energy efficient in order to reduce greenhouse gas emissions.  It is expected to cut annual carbon emissions by 2.5 million tonnes a year and was introduced in April 2001. Opus Energy collects the Climate Change Levy on behalf of HM Revenue and Customs via your electricity invoice. You can find more information about CCL on our Cleaner Energy pages.

What are distribution and transmission charges?

These are the regulated charges of the regional electricity distribution companies and the National Grid – they cover the costs involved in transporting gas and electricity around the country and to your business. These charges are built into your electricity and gas prices and are recovered via your electricity or gas invoice. Transmission and distribution charges typically make up approximately 20% of your electricity invoice.

These charges are not related to the wholesale element of your electricity price – this was fixed by Opus for the duration of your contract and has not changed.

When will the change become effective on my energy invoice?

You will see the change on your invoice effective from the 1st April 2012.
Where can I get further information?

If you would like to find out more about the distribution companies and how their charges are regulated, you can find more about the regulation of transmission and distribution charges on Ofgem's website. Alternatively for more information about the regulation of gas transmission and distribution charges you can visit the Gas Governance website.

Source:
http://www.opusenergy.com/business-customers/opus-energy-electricity/customer-focused-care/faqs/faq--smart-metering/#when_will

19th March, 2012

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