1. Savings Through Compliance Optimising Charging Mechanisms
Workshop 1
Optimising Charging Mechanisms
1st March 2017
Ari Sinai & Dave Moore
Contact our specialists today: Tel:

2. Today’s Approach
Introduction – Setting the Scene of the Workshop
Take one or two Examples – from your bills?
Hopefully we all leave here knowing that energy tariff structure underpins savings opportunities, and good energy taxation savings opportunities frequently exist

3. Put Carbon Compliance in Context
3. What? Levies and taxes on your bills (e.g. CCL, RO FIT) v Incentives for you to:
Improve energy/carbon purchasing
Manage energy/carbon
Invest in energy tech
3. WHAT
2. HOW
1. WHY
2. How? Legislation & spending e.g. Climate Change Act, Energy Act, Decarbonisation Targets, FiT, RHI… the list goes on!
1. Why? The ‘UK’ wants to drive down Carbon Emissions (but needs to balance related tax revenues, budget spends, economies/markets/jobs in related sectors)
Asking WHY for example Central Government is doing something helps to put into context how and what is then done to achieve their goal. Of course the question can be even more complex at EU or Global level!

4. What is Government Trying to Make Us Do With Selective Taxation?
Use Less Carbon
Use Renewable Energy
Use Smart Equipment – Not just to save consumption but to move its use to less “Peak Loading” times.
Doing the Right Thing = Paying Less
With Complexity it can be easy to pay too much.
Procuring the right structures means you can do the right thing in Managing & Investing.

5. Why Focus on Utility Bills & Taxes?
Interpretation of legislative requirements in your specific situation (rules often complex – fresh pair of eyes often helps e.g. CRC savings of ~£40K/y at a university)
CCL exemption / discount opportunities e.g. CCA, CCL Minmet & CHPQA e.g. automotive >£400K/y, semiconductor plant >£20K/y
Tariff Restructuring to Enable Load Shifting Savings e.g. metal sector tariff restructuring enabled >£50K/y load shifting savings to be realised in-house

6. HELP! Utility Bills – Land of OVERLOAD and CONFUSION! Day Rate CRC FiT
VAT
DuOS
Amber Period
BSuOS RO
CCL
Red Period
RO FiT Compensation
TNuOS
Triad
Night Rate

7. Demystifying an Electricity Bill
Commodity Prices – the actual energy price
Taxes & Infrastructure – these charges are based around the units/carbon
Demand Based Charges – Tend to be based around your demand or units used in periods of the country’s highest demand

8. Renewable Heat is a Tougher Nut to Crack
Typical Content of a Gas Bill
Renewable Heat is a Tougher Nut to Crack

9. Taxes & Infrastructure Charges
Workshop – Group Introduction & Questions
Demand Based Charges
Taxes & Infrastructure Charges
Full Electricity Bill Breakdown
Bill and Taxation Checking

10. Procurement & Legislative Opportunities
3. WHAT
2. HOW
1. WHY
3. What? Interpreting bills and legislation to understand the value of opportunities. Procurement policies/practices to reflect cross-cutting themes.
2. How? Understand how you use energy and how it might be manipulated to do the right thing and save money. Procure to achieve the wider integrated goals.
1. Why? To save ££, to do the right thing (environmental, welfare of future generations).
Procuring can mean many things, from ensuring you have the right structures e.g. no point in a simple single rate offer if you plan to move load. Legislative opportunities range from minimising CRC & CCL payments to obtaining refunds.

11. HANDOUT OVERVIEW

12. Thank You – Workshop Wrap-Up / Summary
Examples of some Clients we have worked with…
Providing many services across diverse sectors

13. “Please don’t hesitate to contact us…”
Contacts
For further information or Questions please use the below contact details
Ari Sinai
Dave Moore
Registered Office:
67 Chorley Old Road Bolton BL1 3AJ
Web:
Tel: Fax:
England Office: CR Plus Ltd
PO Box 5094
Rugeley
WS15 9BN
Wales Office: CR Plus Ltd
PO BOX 4187 Cardiff CF14 8AT
Scotland Office: CR Plus Ltd
42 Dalsetter Avenue Glasgow G15 8TE
“Please don’t hesitate to contact us…”

14. Appendix 1 – Demand Based Charges
~21% of typical electricity bill!!
Red Period Mon to Fri 17:00 – 19:30 (WPD South Wales)
Premium of ~10p/kWh in addition to standard unit cost!!!!

15. Appendix 1 – Demand Based Charges
Triads – 3 highest half hour demand periods in year
Occurs Nov to Feb in red period
£42/kW now rising to £72/kW by 2020/21 (South Wales)
Your average across the 3 used to calculate your charge
Announced retrospectively ~March
Triad warnings ~15 to 60/y

16. Appendix 1 – Demand Based Charges
Area to explore in this workshop:
Energy Supply Contract type
To enable:
Triad procedural protocols
Load shifting
Battery storage
Demand side response (contract)
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17. Appendix 2 – Taxes & Infrastructure Charges
~30 – 35% of typical electricity cost
~20 – 25% of typical gas cost
Some key elements of this:
CCL = Climate Change Levy = tax on sale of fossil fuels
CRC = Carbon Reduction Commitment – in scheme if UK group received >6,000MWh of qualifying elec through half-hourly meters Apr 2012 – Mar 2013

18. Appendix 2 – Taxes & Infrastructure Charges
CCL Rates

19. Appendix 2 – Taxes & Infrastructure Charges
CCA Holders’ Discount

20. Appendix 2 – Taxes & Infrastructure Charges
CRC finishes March 2019
CCL increases from Apr 19 to recoup loss of govt income
CCA holders – protected until 2023
Sharp increase for smaller users (Non-CRC and Non-CCA)
CCA value increases!!
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21. WHICH OF THESE ARE OF MOST INTEREST FOR SAVINGS?
Appendix 3 – Electricity Bill Breakdown
Element
Current Situation
%age of Bill
Day Units
£402,319
34%
Night Units
£122,993
10%
Red Units
£76,266 6%
Amber Units
£62,852 5%
Green Units
£2,343 0%
RO Charge
£171,021
15%
FiT Charge
£48,957 4%
EMR CfD Charge
£7,574 1%
BSUoS
£46,542
CCL
£61,361
CRC
£84,323 7%
Triad Charge
£59,640
Availability
£19,800 2%
Standing Charges
£11,660
TOTAL NETT
£1,177,652
100%
VAT
£235,530
TOTAL GROSS
£1,413,183
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WHICH OF THESE ARE OF MOST INTEREST FOR SAVINGS?

22. AVOIDS POTENTIALLY BIG OVERCHARGES OF UP TO 250%!!!!
Appendix 4 – Bill & Taxation Checking
Recommend monthly meter readings – why?
Know your bill in advance
To verify billed energy – estimates are always in the supplier’s favour!!
To verify taxation elements e.g. CCL & VAT
Automated meter reading (AMR) or smart meter systems not always correct e.g. incorrect or missing data
Support compliance schemes e.g. CHPQA
AVOIDS POTENTIALLY BIG OVERCHARGES OF UP TO 250%!!!!
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