Commercial Electricity Contract Customers: Notification of Pass-Through Charges Change

The unit price (i.e., the kilowatt hour (kWh) rate) SSE Airtricity charge you in your electricity supply contract includes both the SSE Airtricity energy charge and regulated pass-through charges. Our SSE Airtricity energy charge will follow the agreed contractual risk management strategy which means a fixed energy price, for the duration outlined in your contract. It also means pass-through cost will only change with approval by the Regulator, the Commission for Regulation of Utilities (“CRU”).

The pass-through charges charged by ESB Networks, Eirgrid and the Single Energy Market Operator (SEMO) for the 2023 - 2024 period have now been approved by the regulator, and the changes to your contract prices are detailed below.

The changes will be applied to your existing prices from 1 October 2023.

For Medium Voltage customers (DG7 and above), the CRU introduced new time of use periods effective from 1 October 2022 as a way to encourage customers to reduce their demand during peak hours i.e. 5pm to 7pm. SSE Airtricity took the decision to delay the implementation of this change and absorb the October 2022 peak pass-through costs, however from 1 October 2023 customers will be charged peak pass-through rates. These peak rates can be viewed in the tables below.

An increase in PSO levy for 2023/24 has also now been confirmed by the CRU. This will lead to an increase in charges for all customers. The new PSO levy rates can be found under the What are the PSO levy rates for business customers? section above.

What are Pass-Through charges?

Pass-through charges are the charges that all electricity suppliers must pay other organisations in the Integrated Single Electricity Market (ISEM) when supplying electricity to customers, like those that we receive for the use of the ESB Networks and Eirgrid’s systems. Usually, ESB Networks and Eirgrid set these charges, subject to regulatory approval (i.e., the CRU), on an annual basis.

Pass-through charges (which are described in the attached Glossary) include:

• Transmission Use of Systems (TUoS);
• Distribution Use of Systems (DUoS);
• Market operator charges;
• Imperfection charges;
• Supplier capacity charges;
• Electricity tax;
• MIC charges*;
• Standing Charge*:
• Low Power Factor surcharge*;
• PSO levy*;
• VAT* and
• The Integrated Single Electricity Market (I-SEM)

* these are shown as separate charges to your kWh tariffs on your bill

How will the changes in pass-through charges impact my premises?

The level of pass-through charges applicable to your premises and the change in these charges from 1 October 2023 depends on the DUoS Group or “DG” number. All supply points connected to the electricity network have a DUoS Group. The DUoS Group is assigned by ESB Networks to the premises based on the network connection characteristics and metering configuration.

Dependent on the DUoS Group for the premise(s), the overall adjustment to your current rates from their current level can be seen in the table below. 

How do I Identify my “DG” number?

The DUoS Group your site belongs to can be located at the top right-hand corner of your bill.

This is identified by the code:

• DG1 & DG2
• DG3 & DG4
• DG 5
• DG 6
• DG 7
• DG8
• DG9
• TCon 

Once you have this information you can see the relevant changes in the pass -through charges for your premises listed below.

DUoS Group (DG1 and DG2) 

DUoS Group 5 (DG5) 

Profile 6 - General Purpose Nightsaver

The total net increase in the kWh rate for day 6.3 c/kWh and decrease in night is 6.3 c/kWh.

Profile 29 - General Purpose Smart 

The total net increase in the kWh rate for day is 6.1 c/kWh, decrease in night is 6.4 c/kWh, and increase in peak is 7.1 c/kWh.

 DUoS Group 6 (DG6) MIC Less than 526kVA  

Low Voltage Max Demand (LVMD)

The total net increase in the kWh rate for day for LVMD NQH is 1.6 c/kWh and decrease in night is 6.8 c/kWh. LVMD QH -Day rate decrease is 1.1 c/kWh and decrease for night is 9.7 c/kWh.

DUoS Group 6 (DG6) MIC Greater than 526kVA

Low Voltage Max Demand (LVMD)

DUoS Group 7 (DG7) MIC Less than 526kVA

Medium Voltage

DUoS Group 7 (DG7) MIC Greater than 526kVA

Medium Voltage

DUoS Group 8 (DG8) MIC Greater than 526kVA

38kV looped

DUoS Group 9 (DG9) MIC Greater than 526kVA

38kV tailed

The total net decrease in the kWh rate for day is 5.2 c/kWh, decrease in night is 9.7 c/kWh, decrease in winter peak is 5.1 c/kWh, and decrease in other peak is 4.9 c/kWh.

110KV (TCon) MIC Greater than 526kVA

Unmetered

24hr Profile 10

Dusk to Dawn Profile 11

Dusk to Midnight

 

Glossary of Terms

Pass-through costs

Pass-through charges are the costs that all electricity suppliers must pay other entities in the Electricity Market when supplying electricity to customers such as those incurred for the use of the ESB Networks distribution and transmission systems.

Transmission Use of System (TUoS)

These are the costs all electricity suppliers pay Eirgrid to transport electricity from the generating station through the transmission grid to the distribution system (or to the customer’s site for the small number of customers connected to the transmission system). The transmission system is the high voltage system for the bulk movement of electricity. The charge, which is set by Eirgrid, is called the Transmission Use of System (TUoS) tariff and is regulated by the CRU.

Distribution Use of System (DUoS)

These are the costs all electricity suppliers pay ESB Networks to transport electricity through the distribution system to a customer’s site. The distribution system is the local part of the network that serves the customer. The charge which is set by ESB networks is called the Distribution Use of System (DUoS) tariff and is regulated by the CRU. 

The Integrated Single Electricity Market (I-SEM)

The Integrated Single Electricity Market (I-SEM) is the wholesale market for Ireland and Northern Ireland. The previous market arrangements have been replaced since 1st October 2018 by multiple markets or auctions, each spanning different trading time frames, with separate (although related) clearing and settlement mechanisms, covering both energy and non-energy commodities.

System Market Operator (SMO) – Market Operator Charge

This covers the cost of the development and operation of the Integrated Single Electricity Market (I-SEM). The cost is shared across all electricity suppliers and generators on the island of Ireland. It is a flat charge per unit on loss adjusted consumption. The charge, which is set by SEMO, is called the Market Operator Charge and is regulated by both The Utility Regulator in Northern Ireland and the CRU in Republic of Ireland.

Imperfection Charge (IC)

Actual dispatch on the all-island transmission network differs from the optimal dispatch derived for the market schedule. This is because constraints are introduced due to network bottlenecks (including the North South Interconnector) and due to the need for the system operator to maintain reserve for operational security. The wholesale energy “system marginal price” calculated in the market is the lowest possible price that the electricity required on the island of Ireland could theoretically be generated at (if there are no constraints). It ignores the limitations of the transmission network and is calculated with perfect foresight. As generators are obliged to sell into the I-SEM, they are guaranteed not to operate at a loss (variable costs only). The imperfections tariff covers the gap between the market price and the cost of dispatching generation in real time into a market where constraints in practice do exist. The charge, which is set by SEMO, is called the Imperfection Charge and is regulated by both the CRU and the Utility Regulator (NI).

Supplier Capacity Charge (SCC)

This charge covers the capacity cost of the generators in the I-SEM. It is published by SEM Committee and approved by both CRU and Utility Regulator (NI).

Other charges

Maximum Import Capacity (MIC) charge or Capacity Charge

MIC is measured in kiloVolt Amperes (kVA). It is the level of electrical capacity, which represents the maximum load you are contracted to import from the electricity network for use in your premises. Significant penalty charges normally apply if you exceed this level.

Standing Charge

Daily standing charges are a combination of the fixed charges associated with providing electricity and gas network services and a share of the supply costs in servicing your account.

Electricity Tax

Government imposed tax on electricity supply. 

Low Power Factor Surcharge

The low power factor surcharge applies to all ‘Wattless Energy ‘(kilovolt amperes hours (kVArh)) recorded in any billing period if the metered kVArh is more than one third of the metered kWh in any billing period. The charge is only applicable to the kVArh in excess of one third of the kWh.