DCP228 and Business Electricity
What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...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.
Honest brokers who will actually save you money!
"I dealt with a gentleman called Mark Weeks. He was extremely efficient, helpful and humerous. He saved me 6 pence per/k/hr, quite the saving when your annual bill is over £12,000. I will be using this service again for my water bill!"This review was posted by EDWARD Wickman on the 22nd of October 2018
Cheryl Sreenan delivered excellent…
"Cheryl Sreenan delivered excellent customer service, professional and polite but very natural with it - it's great to deal with someone who knows their job and cares about their customers. Great savings too and a quick switch which is always good. Will be looking to switch other businesses when they are out of contract."This review was posted by Jackie Reeves on the 22nd of October 2018
Excellent service from Pamwan Johnson
"Excellent service from Pamwan Johnson. Polite, professional and was able to provide a much better deal than I was able to secure direct. Would definitely use this service again."This review was posted by Andrea Kirkham on the 22nd of October 2018
i cant fault the service recieved from…
"i cant fault the service recieved from nicole and daniel"This review was posted by alexander dawson on the 19th of October 2018
Lorraine was patient and great to deal…
"Lorraine was patient and great to deal with. Highly recommended."This review was posted by Keith on the 19th of October 2018