Reducing the impact of rising non-commodity costs

Diagram of non-commodity costs

Every business knows the cost of power has increased – but did you know the energy you use only makes up approximately 35% of your bill? And that there are alternatives to paying the other 65% which is unavoidable if you source power from the grid?

The reality is that two-thirds of your bill is made up of non-commodity costs which include transportation and distribution charges as well as government levies and taxes that are passed on to the customer.

In the last decade, these costs have doubled. In the next decade, they are predicted to rise by another 15%. By 2031, non-commodity costs will therefore make up 80% of the bill, adding to the pressure businesses face from rising wholesale energy costs.

However, onsite gas generation as well as solar and battery storage solutions, deliver guaranteed savings by reducing reliance on power from the grid, and reducing the impact of rising non-commodity costs.

By 2031, a 1MW onsite solution which generates 75% of a business’ 10,500,000 kWh demand, previously supplied via the national grid, will have created savings of more than £3m.

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