I understand that the government agrees CFD (Contract For Difference) deals with electricity generators, so that if wholesale prices fall below the agreed price, then the generator will receieve the difference from the government… and that the government passes on this cost to electricity users in our electricity bills. My question is, what part of the bill is this “CFD tax” (or whatever it is defined as) added to? The standing charge? Or the per KwH cost… i.e. is it proportional to the amount of electricity a customer uses? Thanks!
@greenfrog That’s a great question.
The CFD ‘tax’ is packaged into the unit rate. It’s set as a certain price in the unit rate instead of a proportion