How are gas tariffs calculated?

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How are gas tariffs calculated?

All SSE Airtricity Business Energy gas customers are charged based on their kilowatt hour (kWh) consumption, as well as a daily standing charge. These tariffs are made up of the elements listed below, with Value Added Tax (VAT) and the Government-mandated Carbon Tax listed separately on customer invoices. Higher-usage customers (Gas Band Y, Z, Daily Metered and Large Daily Metered based on the SPC) are also charged a pass-through ‘capacity element’ on their invoice to ensure availability of contracted maximum capacity. All tariffs vary based on a customer’s gas band as determined by Gas Networks Ireland.

SSE Airtricity Business Energy gas tariffs are made up of a combination of four main elements:

  • Wholesale energy costs which relate to the cost of purchasing gas over time to meet customer demand, which is subject to seasonality and relates to market conditions and forward commodities at the time of purchase
  • Pass-through costs which are set by a number of different regulatory and networks bodies and passed on to all suppliers to cover costs including transmission and distribution
  • Supplier margin required to cover all operating costs as well as explicit margin for running a commercial business
  • Conversion Factor which is a multiplier we use to convert your gas from the units on your meter (cubic meters or hundred cubic feet) into the units you are billed on (kWh). More information is available here.

All customers are also subject to payment of VAT, as well as the Carbon Tax, which is a charge applied to all energy sources that produce carbon dioxide emissions as mandated by the Irish Government since 2010. 

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