NPOWER’S NEW ENERGY PLAN PAVES THE WAY IN BUDGET CERTAINTY
NPOWER LAUNCHES ITS NEW ‘FIXED: CERTAINTY’ PLAN FOR LARGE BUSINESSES AS EMR GOES LIVE
In response to the Government’s Electricity Market Reform (EMR), npower has launched a new plan for its customers. The plan takes an innovative approach by securing the often unpredictable costs of policy and non-commodity elements of bills. The new plan, launched this month, is well suited for large businesses across the UK to provide budget certainty in a rapidly changing market.
From 1st August, the next milestone in EMR will take shape, as Low Carbon Contract Companies (LCCC’s) become operational and Contracts for Difference and the Capacity Mechanism get set to go live. npower is urging UK businesses respond to these changes in policy to ensure that they remain competitive. With an estimated 40-50% of bills now made up of non-commodity costs, npower’s new ‘Fixed: Certainty’ plan reduces the risk of inconsistent bills for large business customers by providing fixed energy costs for the duration of their contracts.
Ian Preston, Head of Direct and Technical Sales at npower commented: “It’s increasingly clear from our customers that budgeting in the current energy landscape has never been more of a challenge. We’re tackling this head on with our new Fixed: Certainty plan, reducing risk for businesses and helping them to budget accurately.
“Many of our customers have been concerned about how the EMR will impact UK competitiveness. We’ve worked behind the scenes to ensure that businesses can operate confidently in the UK, working with greater clarity on monthly costs so that they can turn their focus to future investment and growth.”
The plan has been designed to provide budget certainty for the duration of fixed contracts and deliver a promise not to reconcile against costs that are agreed as fixed. Crucially, it locks in the majority of the non-commodity elements of bills, including the immediate costs of Contracts for Difference (CfDs), as well as wrapping in the Feed in Tariff and Renewables Obligation costs, both having caused cost uncertainty for businesses in the past. Additionally, third-party network charges and meter-related fees are also included in the total fixed cost.
The EMR forms the Government’s response to an increased need to meet EU carbon emission targets, and strike a balance between policies and investment to help UK manufacturers continue to compete on a global scale and ensure energy demand is met so that lights stay on. The reform recently received state aid approval from the EU Commission – an important step in the future of the UK’s energy market.
The new Fixed: Certainty plan offered by npower covers current policy impacts, however, it cannot include any new costs imposed by regulations that have not yet been enforced.