Back in 2015 information was released about the Electricity Market reform (EMR); the governments measures to ensure the UK's future electricity supply is reliable and will meet targets to reduce carbon emissions whilst making it affordable for customers.
One of the costs of EMR is the Capacity Market (CM) Settlement Costs Levy which has, until now, been absorbed by Haven Power and shows as zero on a Haven Power bill. However this is set to change from April 2016.
The charge is set to recover the administration costs of running the CM, for example the costs of the Electricity Settlement Company (ESC). It will become a monthly charge for the financial year that is determined by the market share during periods of high usage.
How does the charge work?
Each year the Government publishes a consultation on the proposed ESC budget. The response to the consultation for 2016/2017 was published back in January 2016 and confirmed the total operating costs for 2016/2017 would be £4,283,000. This figure is to be recovered from suppliers based on their market share during periods of high energy demand.
How will this affect customers?
For half-hourly (HH) customers of Haven Power, they will use an estimate on the winter working day usage of their customers between 4pm and 7pm, this will be based on historical data. They will then apportion this charge to their customers in line with their usage which will be collected over 12 months. At the end of the year they will be a reconciliation based on their actual consumption.
However, they have noted that customers on their Haven Power Complete Product will not incur further charges as their rate already takes this charge into consideration. Customers on Deemed of Out of Contract rates will also be unaffected by this charge. Non half-hourly customers will see this charge reflected in the EMR Levy Rate they pay and you can visit the Haven Power website for more information.
What happens next?
HH customers of Haven Power will see the first charge of the CM Settlement Costs Levy on their May invoice for April Consumption.
To find our more about this please email firstname.lastname@example.org