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Businesses are facing their tenth successive year of rising energy costs. Finding ways to mitigate increasing costs and reducing utility bills is a key focus for many businesses.

This is an increasingly difficult task: the increases have been fuelled largely by the cost of supporting more low carbon generation and upgrading infrastructure to accommodate a changing energy system. This means there’s now pressure on both sides of the bill, with increases in both wholesale (commodity) and non-commodity costs (taxes, levies and system charges).

Non-commodity costs are also rising – in fact, they now make up around 60% of business bills. Support for renewable and low carbon technology has increased: the Contracts for Difference (CfD) levy. The Renewable Obligation (RO) levy and the Feed in Tariff all rose at rates well above inflation in the last 12 months. With the Capacity Market levy set to more than double this year (once reinstated), and the Climate Change Levy (CCL) also increasing significantly since the end of the Carbon Reduction Commitment (CRC) in April 2019, organisations of all sizes are likely to have felt the impact of these increasing charges.