Matthew James Cowlishaw and Richard Michael Hawes were appointed Joint Administrators of Robin Hood Energy Limited on 05 January 2021. The affairs, business and property of the Company are managed by the Joint Administrators. The Joint Administrators act as agents of the Company and contract without personal liability. The Joint Administrators are authorised by the Institute of Chartered Accountants in England and Wales. All licensed Insolvency Practitioners of Deloitte LLP are licensed in the UK.

Pass through costs

Pass through costs explained and why we don't think it's right that businesses should absorb this financial risk.

What costs are included in my energy bill?

Your energy bill is made up of more than just the cost of the actual electricity and gas you use.

Just like the price of petrol at a petrol station, the price you pay at the pump is not just for the fuel itself. The price you pay includes all the other costs associated with the process of extracting oil, refining it, distributing it, as well as taxes and other fees.

It's exactly the same for energy prices.

The price you pay for your business energy includes the 'commodity' cost of the electric or gas you use but also the 'non-commodity' costs e.g. the cost to generate, store and distribute through national infrastructure, as well as taxes and levy's.

The surprising thing is that on a typical bill these non-commodity costs can make up to 60% of the total price.

So what are pass through costs?

Traditionally, energy suppliers would combine all of these non-commodity costs into the unit rate or standing charge that your business was quoted. Just like the price of petrol at the petrol station.

Increasingly now, energy suppliers aren't adding these non-commodity costs to their unit rates or standing charges and instead, passing these costs through as a separate item on your bill; hence the name pass through costs.

But why does this matter and why doesn't Robin Hood Energy do this?

Non-commodity costs change (normally up)

Unlike gas and electricity which can be bought at a fixed rate when a customer agrees to a contract, non-commodity prices change over the time of an energy contract, and generally, that change is an increase.

In the past, when all suppliers offered fully inclusive fixed tariffs they would absorb the risk of these non-commodity prices increasing. However, by splitting out the cost of the energy and the non-commodity charges and passing them through to customers it means that the energy supplier no longer carries the risk. Your business does. So if the non-commodity price goes up, even if you're on a fixed price tariff, your bills will go up.

Your business shouldn't carry this risk

Every business is unique and their energy needs are equally diverse but we believe that for the vast majority of businesses in the UK, fixed and fully inclusive energy tariffs offer the best value and give the greatest peace of mind to busy business owners.

As an energy supplier, we are the experts in this market, it is our job to offer the best possible price we can while factoring in the risks associated with variable costs in the industry.

You didn't start your business because you wanted to become an expert at business energy. You just want a fair and transparent price that won't change wildly over time and will stay in line with the amount of energy your business actually uses. You certainly don't want to carry the potential financial variability and associated risk by being exposed to price changes that are completely outside of your control.

Benefits of a fixed price, fully inclusive tariff

With our fixed price and fully inclusive tariffs, we're trying to offer you peace of mind. So you can focus on running your business, not constantly checking your energy bills and your energy use.

With our fully inclusive and fixed tariffs you get:

  • A clear fixed price for your energy
  • Simpler and easy to understand bills
  • Simpler financial planning and forecasting for you
  • We absorb the risk of any increased costs
  • Simple administration if you need to pass on energy costs to tenants/clients etc.
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