An energy bill is not only the price of electricity or gas. It is made up of the energy itself, the cost of moving it through networks, policy costs, metering, supplier costs and taxes.
An energy bill is not only the price of electricity or gas. It is made up of the energy itself, the cost of moving it through networks, policy costs, metering, supplier costs and taxes.
The commodity cost is the wholesale price of the energy. Non-commodity costs include network charges, balancing costs, environmental schemes and supplier operating costs. These can vary by location, time, tariff and customer type.
Smart tariffs reward customers for using electricity at cheaper or greener times. When demand is low or renewable generation is high, electricity can be cheaper. When the grid is stressed, electricity can be more expensive.
Batteries can store energy when it is cheap or abundant and discharge it when it is expensive or needed. AI and optimisation software can help decide when to charge, when to use stored energy and when to support the grid.