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Non-commodity costs

Understanding non-commodity costs

Your energy bill is made up of costs from commodity and non-commodity costs. This includes the cost of electricity or gas, the transmission and distribution costs, and charges associated with government schemes and levies.

The last two are known as non-commodity costs or NCCs, and these obligatory third-party charges currently account for more than 60% of electricity and nearly 45% of gas bills for business consumers.

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Breakdown of energy bills

Electric bill breakdown 2021/22 Gas bill breakdown 2021/2022

A sustainable infrastructure for everyone

It’s in everyone’s interests that the UK’s electricity infrastructure is well-maintained and energy is available even when demand is at its very highest. The job of running and maintaining the network is carried out by transmission and distribution companies, and the costs are recovered via business and household energy bills. The UK Government is also keen to encourage energy efficiency, support renewable energy generation, and meet carbon reduction targets. The cost of these measures also impacts on the overall cost of the energy we supply.