What is a unit rate?

  • Updated

The unit rate is based on your individual consumption, which generally measured in kilowatt hours (kWh). The amount of kWh’s consumed are multiplied by the unit rate to produce the total chargeable amount.

The unit rate typically includes (in most but not all cases, depending on the utility type and how the energy is generated in your building):

  • The actual cost of energy used at the main incoming energy supply.
  • Boiler efficiency (for heat tariffs) – it's impossible for a boiler to operate at 100% efficiency, therefore it’s inevitable that some heat is lost in the production process, which needs to be accounted for. Alternative generation technologies, such as heat pumps, biomass, and energy from waste, follow a similar principle.
  • Heat loss during transmission (for heat tariffs) – as heat is circulated around the primary network, the temperature will drop, despite the insulation provided. These are unavoidable and are typical for all heat networks. Please note, Data Energy is not responsible for the maintenance or performance of the network.
  • VAT – set at 5% for residential utilities, VAT is added to the variable charge to account for the energy used at the main incoming supply. VAT is already applied to the unit rate stated on your bill.

For more information on the parties involved in the running of your development, please refer to our Stakeholders and their responsibilities article. For more information on how your tariff has been calculated, click here.

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