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Green taxes on energy bills nearly double in two years

…still not very much

wind turbines - green taxes on energy bills have nearly doubled

Ofgem figures show green taxes on energy companies have nearly doubled in just two years, adding £91.50 to the average bill.

 The analysis by Energyhelpline found that green taxes account for £91.50 of a typical annual dual fuel bill of £1,310, in comparison to £56.50 in February 2010.

Green taxes are charged by the government to help pay for a variety of green measures including the Carbon Emissions Reduction Target (CERT). These costs make up part of the average energy bill.

How your energy bill breaks down

Utility Bill breakdown

What makes up your energy bill costs?

Environmental schemes subsidised by household gas and electricity bills include:

  • Feed-in Tariff scheme (FiTs)
  • Carbon Emissions Reduction Target (CERT)
  • Community Energy Saving Programme (CESP)
  • The Renewables Obligation (RO)
  • EU Emissions Trading Scheme (ETS)

Speaking to the Telegraph, a spokesman for the Department of Energy and Climate Change (DECC), said that wholesale gas prices were the most important factor behind energy price rises:

“By comparison social and environmental measures represent a small fraction of the bill. Those policies are actually part of the solution, because they’re about helping people insulate their homes and cut energy waste, and developing a more diverse, home-grown mix of energy sources for the UK so we can reduce our huge reliance on expensive imported fossil fuels.

“That’s a long term challenge. In the short term, our advice to customers facing higher energy bills is to shop around for a better deal, check that you are still on the best tariff and if you find you are not, take your business elsewhere.”

Learn more

Utility bills – How utility bills are put together, and how to cut down your usage.

  • john becker

    Get rid of green taxes – they redistribute wealth from the poor to rich liars like Millibands, Bliar and Branson and fat cats BANKERS trading CO2 – C02 IS NOT A POLLUTANT!!

  • Power Industry Engineer

    Look at the transmission costs, there is a profit margin is there too. The value of the £ has dropped, which means that buying fuel on the international market costs more too (QE anyone). Additionally most of our power companies are foreign owned; unlikely to raise prices in their home markets when they have a cash cow island over the channel are they?
    Green tariffs add to the cost in order to give money to ‘green’ companies. How is it part of the solution to punish families keeping warm, and why is 5% VAT added when we pay our bills out of already taxed income.
    We have no option other than to use ‘expensive imported fossil fuels’ as the government will not push forward fracking, refuses to invest in nuclear and punishes domestic coal mines.
    Windmills do not work and we are shutting down 1000’s of MW’s of fossil plants this year. The Climate Change Act was passed with only 5 of our MP’s voting against it, as none of our ‘representatives’ understood the implications we are only just starting to feel now. It was written by Byrony Worthington, a hard left Friends of the Earth activist working under Labour’s Milliband.
    Repeal the act and let market forces actually work.