So what makes up an energy bill? - Maxwell Grant, Reduce Business Costs | Procurement Specialists, Salisbury
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September 3, 2014

So what makes up an energy bill?

So what makes up an energy bill?  Figures taken from Ofgem (see the link below), show that an average business’s energy bill in 2014 will be made up of the following:

  • 38.59% – wholesale costs:  these fluctuate daily and are influenced by world affairs such as the crisis between Russia and the Ukraine
  • 25.08% – network costs: maintain and build new transmission and distribution networks to pass the electricity to homes and businesses
  • 10.09% – environmental and social: these are taxes that are imposed by the governement for renewable energy schemes and supporting families on low incomes
  • 12.87% – operating costs of energy supplier
  •   4.72% – VAT
  •   8.47% – pre-tax profit of energy supplier

https://www.ofgem.gov.uk/publications-and-updates/charts-outlook-costs-make-energy-bills

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