Here’s how the average domestic energy bill is broken down:
Government environmental initiatives have an impact on the cost of your gas and electricity, because a proportion of your bill is used to subsidies them.
These charges are not itemised on your bill, so you won’t see exactly how much you are contributing.
Environmental schemes which are subsidised by your gas and electricity bills include:
- Feed-in Tariff scheme (FITs) – applies to England, Scotland & Wales
- Carbon Emissions Reduction Target (CERT)
- Community Energy Saving Programme (CESP)
- The Renewables Obligation (RO)
- EU Emissions Trading Scheme (ETS)
We all pay for the environmental bit (4% of your gas bill, 10% of your electricity bill), but look how broadly it’s used!