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Energy Charges & Costs
Third Party Charges
Key takeaways
Third party charges are costs that come from outside your supplier (networks, system operation, and some scheme costs).
They can be bundled into your price or itemised, depending on whether your contract is all-inclusive or pass-through.
You should never compare quotes on unit rate alone if third party charges are treated differently.
What are third party charges?
In business energy, “third party charges” usually refers to non-commodity costs that are set by:
- network operators
- the system operator
- and, in practice, various industry and policy mechanisms
One clear way to think about it:
Commodity cost = the fuel you use
Non-commodity cost = networks + industry + policy costs
Npower’s explainer lists examples of third-party charges such as DUoS, BSUoS and TNUoS, alongside government-originated charges like FiT, CfD and Capacity Market.
How they appear on bills and contracts
You might see them as:
- separate line items (common on pass-through)
- grouped under headings like “non-commodity”, “TPCs”, “industry charges”
- bundled into the unit rate/standing charge (common on all-inclusive)
What to do when comparing quotes
- Ask whether third party charges are included or passed through
- If pass-through, ask for the full list
- Compare based on total annual cost using your kWh, not just a headline p/kWh
