The state of renewable energy – infographic
Renewables are big business, and are increasingly viewed as commercially viable, as well as kinder to the envi...Read More
There are two types of Contracts for Difference (CFD), one relevant to investments and one that is a new levy on UK business electricity customers, envisaged as a replacement for the current Renewables Obligation (RO).
In fact, the two are closely related: in business electricity, a Contract for Difference (CFD) is a contract between a low carbon electricity generator and the Low Carbon Contracts Company (LCCC), a Government-owned company.
As the Government explains, the business electricity generator in a CFD is paid the difference between the ‘strike price’ – a price for business electricity reflecting the cost of investing in a particular low carbon technology – and the ‘reference price’– a measure of the market average business electricity price.
Contracts for Difference (CFD) are designed, in the Government’s words, to promote “greener energy and reliable supplies that the country needs, at the lowest possible cost”. The aim is for low-carbon generation to be able to compete with conventional, fossil-fuel generation.
The CFD system offers business electricity suppliers more certainty by reducing their exposure to volatile wholesale prices. UK companies are somewhat protected from higher support costs when business electricity prices are high.
Business electricity Contracts for Difference (CFD) came into force in April 2015. But the Renewables Obligation (RO) will still be in place until 2037 as the scheme’s 20 year lifespan phases out. CFDs will to replace the RO for any new business electricity generation plant from 2017.
Business electricity Contracts for Difference (CFD) will initially be administered as an additional cost on business electricity bills. But, with the phasing out of the Renewables Obligation (RO) offering an uncertain timetable, businesses may wish to take expert advice on how they can best comply with Contracts for Difference (CFD) rules.
Business electricity suppliers will have varying responses to the Contracts for Difference (CFD) rules and making the necessary business electricity comparison could be time consuming. We offer no-obligation comparisons in just 20 minutes and can take care of all the paperwork for your business electricity switch service if you like the sound of what we offer.
Thousands have already chosen SwitchMyBusiness.com – we are the highest rated business energy provider on independent ratings site TrustPilot – so give us a call on 0330 0100 251 (or request a call back using our form) now to start saving.
Our dedicated page has lots more information about business electricity.
"Many thanks to Anthony Pendleton, very courteous and polite, explained everything in right amount of detail and very helpful in sorting out the business utility switch. Would thoroughly recommend."This review was posted by Nicola on the 28th of November 2016
"Rachael Grindrod was excellent, very friendly and helpful."This review was posted by Maria Allen on the 29th of November 2016
"Thanks to Jonathon Burgess who was a great help switching electricity for a charitable organisation. The process was complicated and his patience was appreciated as well as his proffesional attitude. We would not have completed the process without his help. Thanks Dawn"This review was posted by Dawn Kerr on the 29th of November 2016
Great service from Rachel Grindrod. Thanks.
"Great service Rachel"This review was posted by Craig Hewett on the 30th of November 2016
Easy to Switch
"Using SwitchMyBusiness made changing electricity suppliers easy. Thank you Anthony Pendleton for your professional approach with advising on which supplier to use."This review was posted by Vanessa Gernat on the 01st of December 2016