Third Party Costs Explained

Everything you need to know about third party costs

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    Guide Author

    James Longley

    Managing Director

    min read
    Last Updated April 11, 2023

    What is TCR

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      What are these costs?

      TNUoS (Transmission Network Use of Systems)

      This charge covers the cost of installing and maintaining the transmission system. This cost is increasing due to the upgrade of networks to accommodate renewable generation and to replace ageing infrastructure. The average increase in costs due to the customer for 2016/17

      was 16%. From April 2023, how TNUoS is charged moves from a calculated charge to a fixed charge. This is a part of Ofgem’s December 2019 Targeted Charging Review and will affect your bill.

      DUos (Distribution Use of System)

      This charge is paid to the Distribution Network Operator company that works in the transmission network in the area where the meter is located. This charge increased up to 8.5% in 2018/19 depending on the area of the country. From April 2022, DUoS charges are changing from a calculated charge to a fixed charge as a part of Ofgem’s Targeted Charging Review.

      From April 2022, DUoS charges are changing from a calculated charge to a fixed charge as a part of Ofgem’s Targeted Charging Review.

      BSUoS (Balancing Services Use of System)

      Balancing the system and ensuring there is enough generation to cover demand is becoming increasingly more difficult and costly, particularly when businesses are in peak demand and when unreliable renewable generation is low.

      From April 2021, BSUoS charges are being calculated differently, moving from a net to a gross charge. All these updates from Ofgem are likely to affect your bill for the next few years. If you are unsure what TCR could mean for your business, you can find everything you need to know here.

      Capacity Market (CM)

      A scheme to secure additional winter capacity from both generators and Demand Side Response providers.

      Successful bidders receive stable payments in return for a commitment to delivering energy when required.

      This is needed to help secure electricity supplies for the future use of system. The subsidy payment for these generators is paid for by electricity consumers on their consumption in the winter period.

      Renewables Obligation (RO)

      This is the main framework to incentivise the construction of large-scale renewable electricity generation.

      Although this scheme is closing to new business entrants this year, RO will still be a significant charge on customers’ energy bills for several more years.

      Contracts for Difference (CfD)

      Contract for difference (CFD) generators has a contract with the government-appointed Low Carbon Contract Company (LCCC), guaranteeing to pay them a fixed price for their exported electricity.

      The subsidy payment for distribution use of these generators is paid for by electricity consumers through their suppliers.

      This scheme has replaced the RO and FiT charges.

      Feed-in Tariff (FiT)

      FiT is a subsidy scheme introduced in 2010 to support small-scale renewable electricity generation.

      The subsidy payment for FiT generators is paid for by electricity companies and consumers pay more.

      CCL (Climate Change Levy)

      The Climate Change Levy was put in place to pay to encourage a reduction in carbon emissions from renewable power used. Renewable energy buyers were exempt from this tax until 2015 when the Government’s budget changed to apply this charge to all energy users.

      Every April this charge is reviewed and the cost increases by a small amount.

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      Other terms

      BEIS (Department of Business, Energy and Industrial Strategy)

      Replacement of the Department of Energy and Climate change (DEC).

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      Choose your business address

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      Are you comparing for a business or home?

      Business

      Home


      Go Back
      Select Utility
      Now please select a utility I want to get prices for...
      Gas
      Electric
      Gas & Electric
      Water
      Go Back
      Next
      Please enter your business gas information
      How much do you spend & how often?

      An estimate is fine if you don't have a bill to hand

      Go Back
      Get Prices

      Let’s save time, can we automatically gather meter information?

      ? What does this mean?
      To get your quotes at lightening speed we need several key pieces of information which can all be found on your electricity bill. But by simply ticking this box, we can search ‘industry held data’ to get your meter number, electricity consumption and current energy supplier. This means that we can get you quick quotes without asking you to dig out all of your paperwork. This is personal data therefore we need you to allow us to access this information.
      Go Back

      Do you know your electric meter number?

      Does your meter number end in any of the following?

      Go Back
      Enter meter number
      I don’t know
      Please enter your business electricity information
      How much do you spend & how often?

      An estimate is fine if you don't have a bill to hand

      Start date for a new contract?
      Get Prices
      Please enter your water information
      How much do you spend & how often?

      An estimate is fine if you don't have a bill to hand

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      Get Prices

        Enter your details below to get quotes We’ve helped over 90,000 businesses