How is the capacity tariff charged (monthly versus annual billing)

The capacity tariff is always calculated in the same way. Whether you are billed monthly or annually, Fluvius determines your capacity tariff based on your monthly peaks.

The only difference is when you pay the charges.

Annual billing

Have you opted for annual billing? If so, you’ll pay instalments throughout the year.

It’s only on your annual bill that the capacity tariff is definitively calculated based on your monthly peaks during the billing period. Do you have higher peaks in some months and lower ones in others? These are then taken into account together in your annual bill.

Monthly billing

Have you opted for monthly billing? If so, you’ll pay your grid charges every month.

If you have a high monthly peak in a particular month, you’ll see that higher grid charge reflected on your bill sooner. If you have a lower peak the following month, your grid charge will generally be lower too.

A simple example:

Suppose your monthly peaks look like this:

• January: 6.0 kW
• February: 3.0 kW
• March: 2.5 kW

With monthly billing, your bill in January will be higher than in February or March, because you had a higher monthly peak in January.

With an annual billing cycle, you do not instantly pay more in January. That higher monthly peak is only taken into account alongside the other monthly peaks on your final bill.

Good to know: the way in which Fluvius calculates the capacity charge is exactly the same in both cases. The only difference is when you pay the charges.