Haven has advised their clients of significant increases in third party costs and taxes being passed on to electricity suppliers nationally, which you may have seen in the media. The costs include the government’s Feed In Tariff scheme (FiT) and the Renewables Obligation (RO), together with large increases in transmission & distribution costs.
Haven has indicated these increases are considerably higher than they envisaged. In accordance with their terms and conditions they will be increasing their customers’ electricity prices, with effect from 1st April 2012, to incorporate these extra costs and taxes. Increases will be calculated on a site by site basis and are not a result of changes in wholesale electricity costs which are of course fixed for the duration of the contract their client’s have signed.
Worth noting that the Climate Change Levy (CCL) tax, as specified by HM Revenue and Customs is also increasing from 0.485 to 0.509 pence per unit from the same date.
In previous years Haven has absorbed 100% of these increases however this year the increases are so large and unexpected they feel compelled to pass them on in full. It remains to be seen if Haven’s move is the start of other suppliers notifying their client’s of an unexpected price rise!
If you would like to find out more about third party charges or have any questions regarding this matter please call me on 0845 604 1484.