# Electricity billing in the UK

In the UK, an electricity supplier is a retailer of electricity. For each supply point the supplier has to pay the various costs of transmission, distribution, meter operation, data collection, tax etc. The supplier then adds in energy costs and the supplier's own charge.

## MSP and GSP

MSP kWh is the amount of electricity consumed at the 'meter supply point', which is the customer's meter. GSP kWh is obtained by multiplying the MSP kWh by the Loss Adjustment Factor (LAF, a figure > 1) to include the amount of electricity lost when it is conducted through the distribution network, from the 'grid supply point' to the customer's meter. Some kWh elements of the bill are charged at MSP and some at GSP. The LAF for a particular supply depends on the DNO and the supply's characteristics and the time and date (day of week, season etc.).

## The bill

The consumer pays the supplier according to an agreed tariff, possibly including pass-through costs. A pass-through cost is a cost that is charged to the energy supplier, but is then "passed through" directly to the consumer.

### Transmission charges

Transmission charges, known as "Transmission Network Use of System" (TNUoS), are paid to National Grid to cover the expense of running the grid - either charged as TRIAD for large levels of demand, or based on usage between 4pm and 7pm for smaller demand levels. The charge for a supply is calculated at the end of the financial year by taking an average of the GSP kW at each of the three TRIAD times, and multiplying it by the rate (which varies by DNO).

#### RCRC

Residual cashflow reallocation cashflow (RCRC) covers balancing costs in the last 15 minutes before gate closure. The charge is for each half-hour, and may be positive or negative.[1]

### Distribution charges

The distribution charges, known as the "distribution use of system" (DUoS) charges, are paid to the distribution network operator (DNO) on whose network the meter point is located. The charges are:

#### Availability

Availability, otherwise known as "supply capacity" or (kVa), is the maximum kVA allowed for a particular supply in a particular network, and is set before the supply is energised. This maximum capacity is charged every month despite the fact the maximum demand may be lower. If this availability figure is exceeded, the maximum demand may be charged instead and this figure may stay as the chargeable figure for twelve months depending on the distribution area. Alternatively, it can just return to the original availability figure.

• Unit rates - these rates are split into 3 time periods; Red, Amber and Green. These charges vary per distribution company. Please see the chart below for the applicable timebands for each company.

DNO Band Weekday Weekend Western Power - Midlands, South West & Wales (EMEB & MIDE) Red 16:00 - 19:00 Amber 07:30 - 16:00 & 19:00 - 21:00 Green 00:00 - 07:30 & 21:00 - 24:00 all day Western Power - Midlands, South West & Wales (SWALEC) Red 17:00 - 19:30 Amber 07:30 - 17:00 & 19:30 - 22:00 12:00 - 13:00 & 16:00 - 21:00 Green 00:00 - 07:30 & 22:00 - 24:00 00:00 - 12:00 & 13:00 - 16:00 & 21:00 - 24:00 Western Power - Midlands, South West & Wales (SWEB) Red 17:00 - 19:00 Amber 07:30 - 17:00 & 19:00 - 21:30 16:30 - 19:30 Green 00:00 - 7:30 & 21:30 - 24:00 00:00 - 16:30 & 19:30 - 24:00 NorthEast (YELG) Red 16:00 - 19:30 Amber 08:00 - 16:00 & 19:30 - 22:00 Green 00:00 - 08:00 & 22:00 - 24:00 all day NorthEast (NEEB) Red 16:00 - 19:30 Amber 08:00 - 16:00 & 19:30 - 22:00 Green 00:00 - 08:00 & 22:00 - 24:00 all day London Power (LOND) Red 11:00 - 14:00 & 16:00 - 19:00 Amber 07:00 - 11:00 & 14:00 - 16:00 & 19:00 - 23:00 Green 00:00 - 07:00 & 23:00 - 24:00 all day Eastern (EELC) Red 16:00 - 19:00 Amber 07:00 - 16:00 & 19:00 - 23:00 Green 00:00 - 07:00 & 23:00 - 24:00 all day South Eastern (SEEB) Red 16:00 - 19:00 Amber 07:00 - 16:00 & 19:00 - 23:00 Green 00:00 - 07:00 & 23:00 - 24:00 all day North West (NORW) Red 16:30 - 18:30 & 19:30 - 22:00 Amber 09:00 - 16:30 & 18:30 - 20:30 16:30 - 18:30 Green 00:00 - 09:00 & 20:30 - 24:00 00:00 - 12:30 & 18:30 - 24:00 Scottish Hydro (HYDE) Red 12:30 - 14:30 & 16:30 - 21:00 Amber 07:00 - 12:30 & 14:30 - 16:30 12:30 - 14:00 & 17:30 - 20:30 Green 00:00 - 07:00 & 21:00 - 24:00 00:00 - 12:30 & 14:00 - 17:30 & 20:30 - 24:00 Southern Electric (SOUT) Red 16:30 - 19:00 Amber 09:00 - 16:30 & 19:00 - 20:30 Green 00:00 - 09:00 & 20:30 - 24:00 all day Manweb (MANW) Red 16:30 - 19:30 Amber 08:00 - 16:30 & 19:30 - 22:30 16:00 - 20:00 Green 00:00 - 08:00 & 22:30 - 24:00 00:00 - 16:00 & 20:00 - 24:00 Scottish Power (SPOW) Red 16:30 - 19:30 Amber 08:00 - 16:30 & 19:30 - 22:30 16:00 - 20:00 Green 00:00 - 08:00 & 22:30 - 24:00 00:00 - 16:00 & 20:00 - 24:00

#### Reactive power

This also varies with each distribution area, and is charged if the power factor for a supply is deemed too low.

#### Fixed charge

The fixed charge is in units of pence / MPAN / day.[2]

### Climate change levy

Main article: Climate change levy

The climate change levy is a p/kWh tax on certain electricity use. Exempt supplies include domestic supplies and supplies using less than the de minimis threshold of 1,000 kWh / month.[3]

### Energy charge

Energy charges pay per kWh (kilo watt hour).

### Data collection charge

The data collection charge is a fee paid to the data collector for determining the energy consumption of the supply.

### Meter operation charge

The meter operation charge is a fee paid to the meter operator for installing and maintaining the meter.

### VAT

VAT is payable at the standard rate unless the supply meets certain conditions (e.g. domestic supplies, or supplies that use less than 1000 kWh per month) in which case they are charged at the reduced rate.[4]

## Changing supplier

For a non-half-hourly supply, the NHHDC sets the change of supplier (CoS) read from a meter read, a customer read or a deemed read. A deemed read is one estimated by the NHHDC based on any previous or subsequent readings. A CoS read can be disputed up to final reconciliation.[5] Final reconciliation is fourteen months afterwards. If a normal read comes in after final reconciliation that is lower than the CoS read, the new supplier should credit the customer.