Utility bills can be confusing things. They often contain a number of varying charges that have been added to your total energy use. This can make it extremely difficult to work out what it is that you’re actually paying for.
Here we take a look at what all the charges on your utility bills are and we investigate why they’re being paid.
Gas – 67%
Electricity – 58%
The biggest part of your energy bill is made up of your actual energy consumption during the period that you are being billed for.
This section of your charge will include the wholesale costs that your gas or electricity supplier had to pay to purchase this energy in the first place.
This section of your charge will also contain any profit margin that your gas or electricity supplier will be passing on to you, in order to make their business some money.
The supply costs of your energy supplier will also be contained within this section. This normally includes any costs that are associated with running the business, such as call centers or engineer call out services.
Gas – 16%
Electricity – 16%
This section of your bill is charged for the cost of getting your energy from the generator to your house. This means that it includes the cost of maintaining the network of wires and pipes that transfer your gas or electricity supply to your house.
Gas – 2%
Electricity – 4%
Costs associated with transmission fees are similar to those associated with distribution fees. Your transmission network varies depending on what region of the UK you are located in.
Gas – 5%
Electricity – 5%
Whilst you do not pay the full amount of VAT on your gas and electricity bills, you do still pay 5%. This percentage is capped for the time being, however they are subject to change depending on government policy.
Gas – 6%
Electricity – 11%
A portion of your energy bills also go towards certain government environmental schemes. The idea behind this is that these fees are going towards providing more sustainable alternatives to carbon-based energy.
Gas – 4%
Electricity – 5%
These fees included the costs of getting a meter installed or maintained and also the storage costs of gas.
If you feel like you should be paying less for your gas and electricity bills, then try running a price comparison with our website. In moments you’ll be looking at a vast array of cheaper deals that could be saving you money.