16 Mar '12, 10am

New blog post: What the Papers Won’t Say

What I am saying is that I don’t believe that suppliers split the ROC cost equally per kWh between domestic and non-domestic whilst your calculation assumes that this is the case – so it depends how suppliers add the cost of ROCs to bills. If they charge a flat 0.2p per kWh to everyone equally to cover ROCs then using the GWh % split is the right way to do it as everyone will be contributing to ROC costs based purely on their consumption. But my understanding is that that is not how the pricing works. That seems to be what DECC say as well. If the ROC cost is added in as just another overhead that needs to be recovered via total billing then you need to split the domestic/non-domestic by cost as well. The fact that non-domestic tariffs are negotiable, for large consumers, suggests that this is the case too. Every £1 that a supplier fails to recover from a non-domestic cust...

Full article: http://zerocarbonista.com/2012/03/16/what-the-papers-wont...

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