Energy Bill Explained

Your energy bill explained... What does your energy bill pay for? ER The Energy Transportation Taxes and Levies Everything involved in the production of the energy itself. The costs associated with getting the energy to you ready to use. Government policies that ensure Britain has affordable, clean energy. The Energy What are you paying for? How will the cost change? Production The actual production of the energy, whether it be through renewable or non-renewable. £600 £514 Trading and selling £500 The cost of buying the energy actually makes £400 up the biggest portion of your bill. Wholesale prices often change throughout the year. £300 Customer service £200 2011 2013 2015 2020 A small portion of the bill can be seen to reflect £100 the costs of the service you are being provided by the broker or supplier. Source: Npower. Figures are for average annual household energy bill Transportation How will the cost change? What are you paying for? Delivery £350 £289 Energy suppliers pay the operators of the distribution networks to ensure the energy £300 £250 reaches the end supply. This is regulated by Ofgem. £200 £150 Maintenance The costs of maintenance such as installing £100 meters and keeping them running safely £50 and efficiently. 2011 2013 2015 2020 Source: Npower. Figures are for average annual household energy bill Taxes and Levies What are they? How will the cost change? Current taxes and levies £350 Ш1 Climate change Levy £300 Climate change agreements CRC Energy Efficiency Scheme £250 EU Emissions Trading Systems (EU ETS) £172 £200 Feed-in Tariff Scheme £132 Renewable Heat Incentive £150 Renewables Obligations (RO) £100 £50 2011 2013 2015 2020 Source: Npower. Figures are for average annual household energy bill In Summary How will all these changes effect your whole bill by 2020? Cost of each component: |10% 129% 1133% £1000 43% £800 2011 - 2020 2011 - 2020 2011 - 2020 64% £600 28% £400 23% 29% ER £200 13% 2011 Energy Transportation 2020 Taxes Source: Npower. Figures are for average annual household energy bill By 2020 the average energy bill is expected to have risen by 22% pulse Pulse Business Energy gives a fresh approach to energy procurement, helping businesses manage their energy budgets whilst supporting a more sustainable energy future. business energy www.pulsebusinessenergy.co.uk @Pulse_BizEnergy £487 £233 £285 £451 £465 £301 £879 £164 £З08 £1074