Budget Tool

Delivered through the Optimisation Desk, Budget Tool enables you to understand your future energy costs including non-commodity elements

 

Estimate future energy costs up to ten years in advance

Energy is a significant business cost, so budgeting effectively is an important requirement. But the energy market is volatile, and bills include a growing number of non-commodity elements, including ever-increasing subsidies for government policies. Forecasting effectively for the future is challenging.

That’s why we’ve developed our Budget Tool, which builds up an extremely accurate total delivered annual budget value for each year of your supply contract with us, up to ten years in advance.

This tool has been developed in collaboration and with ongoing input from three of our key business areas – Risk Management, Pricing, and Network Management & Energy Reconciliation.

Using a ‘bottom up’ approach, the Budget Tool calculates your total delivered budget using:

  • Your site details and consumption forecasts
  • Forecasts of pass-through costs for the life of your contract, including: network and distribution charges plus renewable subsidies such as the Feed in Tariff and Contracts for Difference
  • Your latest Price Setting Report position
  • Forecasted future residual and imbalance costs

Budget Tool example report

MWh Oct 15 Annual Oct 16 Annual Oct 17 Annual Oct 18 Annual
Estimated Annual Consumption 166,499 166,499 166,499 166,499
£/MWh Oct 15 Annual Oct 16 Annual Oct 17 Annual Oct 18 Annual
Energy 58.25 59.76 61.24 64.69
£/MWh Oct 15 Annual Oct 16 Annual Oct 17 Annual Oct 18 Annual
BSUoS 2.28 2.35 2.46 2.58
Tloss 0.60 0.62 0.63 0.67
Imbalance 0.76 0.77 0.79 0.82
Assistance for Areas with High Electricity Distribution Costs Scheme 0.2 0.21 0.22 0.23
Management Fee 0.75 0.74 0.76 0.76
£ Oct 15 Annual Oct 16 Annual Oct 17 Annual Oct 18 Annual
Energy £9,698,560 £9,949,974 £10,196,392 £10,770,314
BSUoS £379,617 £391,272 £409,587 £429,567
Tloss £99,821 £102,418 £105,048 £110,903
Imbalance £126,539 £128,204 £131,534 £136,529
Assistance for Areas with High Electricity Distribution Costs Scheme £33,300 £34,965 £36,630 £38,295
Management Fee £124,547 £123,013 £126,539 £126,539
  £10,462,384 £10,729,846 £11,005,730 £11,612,147
£ Oct 15 Annual Oct 16 Annual Oct 17 Annual Oct 18 Annual
Dloss £680,066 £697,440 £716,372 £754,790
DUoS £2,892,348 £3,156,989 £2,761,674 £3,039,215
TUoS £163,272 £298,896 £291,590 £309,390
DC Charge £29,925 £29,925 £29,925 £29,925
  £3,765,600 £4,133,350 £3,738,561 £4,133,319
£ Oct 15 Annual Oct 16 Annual Oct 17 Annual Oct 18 Annual
Total Cost (£) £14,227,985 £14,853,197 £14,744,291 £15,745,465
CCL (£) £807,520 £847,479 £872,454 £900,373
EMR (£)        
Renewables Obligation £1,758,228 £2,114,536 £2,372,609 £2,447,534
FiT (£) £476,167 £597,731 £697,630 £764,230
Total inc CCL (£) £17,269,919 £18,422,943 £18,686,985 £19,857,603

Direct budget management

Select from three levels of Optimisation Desk expert support to suit your requirements to set up and operate a flexible energy contract

 

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