Introduction
In the intricate world of energy supply, being well-informed about your Out of Contract (OOC) rates is more than just a financial obligation—it's a strategic necessity. As of the 1st of January, 2024, Drax's OOC rates have been updated, and they may have a considerable impact on the energy bills of SMEs across Great Britain. The Smart Energy Company is here to demystify these rates and guide you towards making more cost-effective energy choices.
What Are Drax's Out of Contract Rates?
When your fixed energy contract with Drax concludes, and you haven't negotiated a new one, you automatically shift to OOC rates. These rates are significantly higher than contracted rates and can inflate your energy costs without warning. For Profile Classes 1-8, all energy usage is charged at the 'Day Rate', and for Profile Class 0, additional charges like TNUoS and DUoS are applicable.
Drax's Current Out of Contract Rates Effective 01st January 2024
Profile Class | Day Rate (p/kWh) | Standing Charge (p/Day) | Other costs |
1,2,3,4 | 29.71 | 400.00 | ​ |
5,6,7,8 | 29.71 | 400.00 | ​ |
0 (Half Hourly) | 26.73 +TNUos and DUoS* | 3000.00* | Metering / DA / DC / Reactive Power at cost |
*HHAC + TNUoS and DUoS to be added on
kWh – kiloWatt hour TNUoS – Transmission Network Use of System: the transmission cost associated with the relevant Half Hourly supply; National Grid Company levies this charge HHAC – Half Hourly Availability Charge: we calculate this by multiplying the Network Operator’s published availability rate for the relevant HH supply - expressed in pence/kVA/day - by the customer’s Chargeable Supply Capacity - expressed in kVA DA – Data Aggregator DC – Data Collector
The Impact on Your Business:
It’s essential to understand the full picture. OOC rates can be as much as 70% higher than contracted prices. For example, a business on a Profile Class 1-8 tariff could be facing a day rate of 29.71p/kWh with a standing charge of 400p/day, which over time adds up to a substantial amount. And for half-hourly settled customers, the additional network charges can create an even bigger financial strain.
How The Smart Energy Company Can Assist:
Navigating these rates doesn't have to be daunting. At The Smart Energy Company, we provide transparent, customer-focused utility contracts, ensuring that you're not caught off-guard by sudden rate increases. Our dedicated account managers and detailed market reports help you secure the best deals at the right time, not just when your contract is up for renewal.
Worried about overpaying for energy? Don't wait for your contract to lapse.
Time to Review Your Energy Contract with Drax?
If you're approaching the end of your contract or have already transitioned to OOC rates, it's time for a chat. In just a couple of minutes, we can begin the process of evaluating your energy needs and potentially unlocking savings for your business.
Conclusion:
The energy market is complex, but with The Smart Energy Company, it becomes a lot less daunting. Partner with us to ensure that you're not left in the dark with high OOC rates from suppliers like Drax. Our aim is to empower you to make informed decisions that keep your energy costs optimised and predictable.
Ready to take control of your energy bills?
Reach out today and take the first step towards a more sustainable energy future for your business.
0151 459 3388 | info@smart-energy.uk
