Flex Pricing allows businesses to take advantage of price fluctuations over the lifetime of the contract. Significant cost savings can be made by making purchases when the wholesale price is favourable.
Flex Pricing splits your electricity bill into two distinct areas: commodity costs and non-commodity costs.
Non-commodity costs are known as pass through charges such as:
TNUoS which means Transmission Network Use of System
BSUoS which means Balancing Services Use of System
RO which means Renewable Obligation – electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources
FiTs Charges which means Feed in Tariff charges
The suppliers of commercial electricity put a lot of margin (for profit) into the non-commodity costs on fixed term contracts. These costs can be managed down more effectively when priced separately on an Energy Flex price contract