Lowest cost, predictable bills

Typical energy suppliers carry wholesale market markups you never see, which get added to your bill. Switch to RED™ and pay closer to the true cost of energy.

Why are business energy bills so expensive?

Why are business energy bills so expensive?

Up to 30% of a traditional bill pays for wholesale markups, supplier fees and trading costs that never get itemised. RED™ removes them: our tariff comes from our own pricing engine, not the wholesale market, so you pay closer to the true cost of energy.

No middlemen = 30% cheaper

RED™ runs on our own pricing engine, removing the layers of middlemen and inefficiencies built into the wholesale market that get added to your bill (up to 30% of every bill).

Earn more through RED™ Plus

Most of what you pay isn't just power, but the non-power costs stacked alongside it. Through our RED™ Plus P442 benefit, we link your consumption to UK renewable generation to lower your non-power costs. This is in addition to the savings already unlocked by our pricing engine.

Energy with nothing to hide

Some charges are industry costs that every supplier has to pass on. These are not ours to control.  Rather than leaving you guessing, we itemise these on your quote with 100% clarity as to what it is and where that money goes.

Lower bills with nothing to hide

over 91%

Renewal rate

5,500+

UK businesses already running on RED™

£60M+

Already saved by our customers

Priced outside the wholesale market

Traditional suppliers buy electricity through the wholesale market, adding layers of risk margins and unnecessary trading costs before passing the price to you.

RED™ saves you more on every bill.

Traditional energy bill

Wholesale markups

Supplier fees

Non-power costs

Energy costs

RED™ Bill

RED™ transaction fee

Non-power costs

Energy costs

Your RED™ tariff comes from our own pricing engine, which fulfils supply and demand across our portfolio of UK renewable generators and businesses.

How does RED™ Day/Night Fixed work?

RED™ Day/Night Fixed

We fix your unit rates, standing charge and capacity charge for the length of your contract, and pass every third-party cost through at 0% markup. Every charge is named on your quote from day one, so nothing moves mid-contract without you knowing why.

We fix your unit rates

Day and night rates, fixed for the duration of your contract. These include the cost of generating your electricity, a set of non-commodity costs we fix, and our fees.

We fix your standing and capacity charges

These cover the costs of keeping your site connected and your agreed capacity reserved, mainly through your local distribution network.

We list every charge we pass through at cost

Passthrough costs are clearly listed on your quote from day one. If these costs move, the difference is always communicated in advance and passed through with no margin added.

Every charge, named and explained

Fixed charges

The charges that don’t change during your contract.

Day and night unit rates

The price you pay for the electricity you use

Your unit rate covers three things: the energy itself, our fee, and ten non-commodity costs every business pays by law.

Who sets this?

We do. Removing wholesale market mark-ups means your rate starts from a lower base than a traditional supplier's. Every cost inside it is worked out upfront and locked in, so nothing moves mid-contract.

Why it’s fixed

Predictability matters. We fix every cost we control.

What non commodity costs are included?

Ten non-commodity costs sit inside your unit rate for the whole contract: CfD, Capacity Market charges, FiT, RO, DUoS, BSUoS, RCRC, the Nuclear RAB Levy, EII Support Levy, and AAHEDC. Like VAT, these are obligatory charges set by third parties – NESO, DNOs, and Ofgem-administered schemes. We fix them into your rate for the length of your contract.

RED™ Plus benefit

Fixed reduction on your unit rate, pioneered by tem

An additional saving from reducing some non-commodity costs.

Who sets this?

P442 is an industry scheme that exempts businesses from some non-commodity costs by matching their consumption to UK renewable generation. tem pioneered its rollout and has returned millions in savings to businesses and generators since.

Why it’s fixed

This saving is locked in for your contract and shown as its own line, so you can see it clearly.

Standing charge

The cost of keeping your site connected to the network, and a fixed contribution towards meter servicing.

A fixed monthly charge. Your network costs are passed through at 0% markup, and a small fixed fee is added to cover occasional site visits.

Who sets this?

Two things make up this charge. Your Distribution Network Operator (DNO) charges for maintaining the wires and substations that bring power to your site: we pass this cost on at 0% markup, itemised on your quote, spread out over the life of your contract. Think of it like line rental on a phone: a fixed monthly fee for keeping the connection open, whether you use that much power or not. On top of that, we add a small fixed fee ourselves to cover occasional site visits, like handheld meter reads or modem exchanges, so the cost doesn't land as a surprise bill whenever one happens.

Can you reduce it?

Partially. If you hold a direct contract with your own Meter Operator (MOP) or Data Collector (DC), we remove part of the site-visit fee. If you hold direct contracts with both, we remove it entirely.

Worth knowing

Suppliers split costs between unit rates and standing charges differently, which makes quotes hard to compare. A lower standing charge often means the same cost has moved into the unit rate instead. It's worth checking you're comparing like-for-like.

Capacity charge

The cost of reserving your share of the grid.

A fixed monthly charge that’s based on your site’s agreed kVA capacity. It only changes if your capacity agreement changes.

Who sets this?

Your Distribution Network Operator, charged per kVA of agreed capacity, per month. Picture your connection as a pipe. The kWh you use is the water flowing through it. Your kVA capacity is the width of the pipe – the most that could flow through at any one moment. This charge is for reserving that width, whether you use all of it or not.

Can you reduce it?

Often, yes. Check your half-hourly data against your agreed band. If a lower band fits, you can apply to your DNO to reduce it. One caveat: getting capacity back later isn't guaranteed, so leave room for genuine peaks – going over your band brings a separate charge (Excess Capacity, below). We can share your usage data to help you decide.

Passthrough charges

Third party costs, passed on at 0% markup.

TNUoS: Residual Banded Charges

Fees for running and upgrading the UK's electricity transmission network

A monthly charge, forecast at quote and billed at 0% markup, set by an industry body every January.

Who sets this?

The National Energy System Operator (NESO), not us. Think of the transmission network as the UK's motorways: moving power at high voltage from generators across the country. And the distribution network as the B-roads: they carry it the rest of the way to your door. Your rate depends on your site's maximum demand. Every UK business pays it. We itemise it so you know exactly what you're paying and why.

Why it’s a passthrough cost

NESO confirms next year's rate every January. Nobody knows the number before then. Suppliers who fold this into a "fixed" price usually build in a safety buffer to cover that uncertainty. We show you our forecast on your quote, then charge exactly what NESO charges us. No buffer, no markup.

Does it change?

Yes, once a year. NESO confirms the new rate by 31 January; it takes effect on 1 April. If it changes, we tell you before your bill does.

Can you reduce it?

Potentially. If you're billed TNUoS as a passthrough charge, lowering your site's kVA can lower your cost. Drop it far enough, and you move into a lower TNUoS tariff band entirely. Check your maximum demand against your current band; if there's room to bring it down, it's worth exploring.

Climate Change Levy (CCL)

A government tax on energy use

An obligatory tax set by HMRC. We pass it on at 0% markup.

Who sets this?

HMRC sets the rate in the annual Budget. It appears on every UK business energy bill, from every supplier, unless you qualify for a relief.

Why it’s a passthrough cost

It's a tax. We collect it at HMRC's rate and pass it straight through.

Does it change?

Yes, but not every year. HMRC sets the rate and confirms it well ahead of time, and any change takes effect on 1 April. The current CCL rate, effective from April 2026, is £0.00801/kWh, and it's confirmed to rise to £0.00827/kWh from April 2027.

Can you reduce it?

If you're eligible. Businesses with a Climate Change Agreement get 92% relief on electricity CCL. Charities using energy for non-business purposes are exempt, as are very small users. Send us your exemption documentation and we'll apply the relief.

Reactive power

Applies only if you draw power inefficiently

Some equipment, such as motors, compressors, and older lighting, draws power in a way that makes the local network work harder, a bit like an engine revving in neutral: energy spent, with less of it doing useful work. This charge covers that extra work.

Who sets this?

Your DNO measures it at your meter and charges accordingly. Many sites never see this charge at all.

Why it’s a passthrough cost

It's triggered by how your site uses electricity. We pass it through at the DNO's rate, only if and when it happens, at 0% markup.

Can you reduce it?

Usually. Power factor correction equipment is a one-off fix that often pays for itself. If reactive power charges show up on your bills, ask an electrical contractor to measure your power factor. Correcting it can remove the charge entirely.

Excess capacity

Applies only if you use more than your agreed capacity

Push more water through a pipe than it's built for, and you pay a premium for the overflow. It works the same way with your grid connection: go above your agreed kVA capacity, and the network charges more for the excess.

Who sets this?

Your Distribution Network Operator sets and measures it. It only appears if you exceed your agreed band.

Why it’s a passthrough cost

Like the capacity charge itself, this depends entirely on your site's demand and your agreement with the network. We pass it through at cost, only when it occurs.

Can you reduce it?

Yes. If it keeps appearing, your agreed capacity is set too low. Your capacity agreement sits with your Distribution Network Operator, so you can apply to them for a higher band. We can share your half-hourly usage data to support the application.

Extra savings on your
non-power costs with
RED™ Plus

RED™ Plus is a fixed reduction on your unit rate, from P442, the industry scheme tem pioneered that exempts eligible businesses from some non-commodity costs. P442 exists because tem made exempt supply accessible to all eligible UK businesses, saving you money on non-commodity costs. We apply it to every eligible* quote, as the RED™ Plus benefit.

Traditional
energy bill

Traditional
energy bill

Wholesale markups

Wholesale
markups

Supplier fees

Non-power costs

Energy costs

RED™ Bill

RED

RED™ transaction fee

RED™ transaction fee

Non-power costs

Energy costs

RED™ Plus Bill

RED Plus

RED™ transaction fee

RED™ transaction fee

Non-power costs

Energy costs

Available on all RED™ Day/Night Fixed quotes*

A fixed p/kWh benefit, credited on every monthly invoice

No minimum usage required

*Available to all businesses except those classified as Energy Intensive Industry (EII).

“Switching to RED™ cut our energy bills by 40%, saving us £12,000 a year. That money goes straight back into the club: more kids on the pitch, more training sessions, more investment in the community.”

“Switching to RED™ cut our energy bills by 40%, saving us £12,000 a year. That money goes straight back into the club: more kids on the pitch, more training sessions, more investment in the community.”

“Switching to RED™ cut our energy bills by 40%, saving us £12,000 a year. That money goes straight back into the club: more kids on the pitch, more training sessions, more investment in the community.”

Gorseinon RFC

Gorseinon RFC

Huw

Huw

Questions about your quote and bill.

Questions about your quote and bill.

Why does my quote show more line items than other suppliers?

Why does my standing charge look higher than a competitor's quote?

What makes passthrough charges go up or down, and what does it mean for my price?

Can I fix NCCs like TNUoS?

Is RED™ Day/Night Fixed renewable energy?

What contract lengths are available?

How much does business electricity cost with tem?

How do I switch to tem?

Switch to

RED™

RED™

£60M+ of energy costs already saved for UK businesses

Up to 30% of your energy bills pays for wholesale market trading costs. RED™ removes them so you pay closer to the true cost of energy.