Non-commodity charges are usually set by regulatory bodies, such as market regulators, utility commissions, or government agencies. Each rate or tariff comes with its own structure, eligibility rules, and potential exemptions.
Non-commodity charges are usually set by regulatory bodies such as market regulators, utility commissions, or government agencies. For businesses, identifying the most cost-effective options often requires a deep understanding of usage patterns, local regulations, and tariffs.
Without expert analysis, businesses may unknowingly pay more than necessary.
1. Assess
Identify facility type and develop a detailed annual usage profile
2. Analyze
Review current invoices to understand how non-commodity charges are applied
3. Optimize
Evaluate available rate structures, tariffs, and potential exemptions for cost savings
4. Report
Deliver a thorough report summarizing findings and savings opportunities
5. Implement
Put recommended strategies into action by coordinating with utilities to secure new rates class, apply tariff adjustments, and ensure all savings are fully realized on future invoices.
In deregulated energy markets,
Businesses have traditionally focused on managing the commodity cost of electricity or gas – the price per unit of energy.
However, a significant position of an energy bill is made up of non-commodity costs, which are often overlooked. Being on the right rate class is essential for your business.
Non-commodity costs typically include charges
• related to transmission and distribution
• capacity and system balancing
• system losses
• government-imposed energy taxes
• environmental and sustainability levies
The energy information provided has been sourced from third-party utilities and suppliers. As such, we cannot guarantee its accuracy, completeness, or suitability, and we assume no liability for any outcomes resulting from its use. We strongly recommend reviewing your utility bills and historical pricing data to verify all details. Please note that past pricing is not necessarily indicative of future rates or performance.