Did you know nearly nine out of ten Brits are baffled by where their energy bill money really goes? A new survey has uncovered that most people are in the dark about the breakdown of their energy costs. Only a tiny 14% could pinpoint the main components such as operating, network, and policy expenses.
Interestingly, many are pointing fingers at geopolitical factors like wars and trade deals or at inflation for rising costs. But here’s the catch—‘non-supplier’ costs are nearly matching the actual energy costs and continue to rise. Most people are misjudging how much goes towards things like network costs, which are actually about 28% of the bill, not the 12% most guessed. And don’t get started on supplier profits; they’re often believed to gobble up 13%, but in reality, they account for less than 3%!
The survey also highlighted some surprising extras on your bill—more than half of us are unaware that part of our payments chip away at a whopping £5bn domestic energy debt! Plus, 60% are clueless that policy costs for government schemes sneak their way in instead of being covered by general taxes.
This research shines a light on Utilita’s Fairer Energy campaign, which aims to demystify what’s inflating our energy bills. CEO Bill Bullen has some ideas: shifting network upgrade costs to government bonds instead of our bills could trim at least £108 a year by 2031. Moreover, using VAT from energy bills to fund social discounts could mean up to £450 in savings for those really feeling the pinch.
Almost half the survey’s respondents feel it’s the Government’s job to keep costs in check, and a notable 66% think there’s not enough transparency around non-energy-related charges on bills. Another eye-opener? A projected £108 is set to be added to your annual energy bills by 2030, to cover essential upgrades to the grid.
Utilita’s message is loud and clear: understanding our bills is the first step, but real change requires actionable policy shifts. Moving government scheme costs off bills and integrating low-carbon tech for low-income households could make a difference for everyone. Let’s hope we see these changes roll out soon!