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Have the green levy cuts reduced your energy bill?

With the last of the big six poised to implement cuts to green levies, we examine their impact on your gas and electricity bill

What do green levy cuts mean for you?

What do green levy cuts mean for you?

On Monday 24 March, SSE will become the last of the big six energy companies – British Gas, EDF Energy, E.ON, npower and ScottishPower – to cut its average bill size in line with the government led cuts to green levies.

Many customers will have received a letter from their supplier letting them know that their annual energy bill will be about £50 cheaper as a result of the cuts.

Although this is true, it does not take into account the big six’s winter price increases, and on average, customers of one of the big six will be paying £53 more for their energy than last year.

Big six still trailing behind small suppliers

In this context, it is worth noting that none of the big six are currently offering the cheapest gas and electricity plans on the market. Independent suppliers, First Utility and Ovo Energy, are currently offering the best gas and electricity deals for consumers.

With the present gap between the cheapest and most expensive energy plan standing at close to £300, consumers are advised to run an energy comparison and find out how much they could save on their utility bills.

Not all customers to benefit from cuts

In addition to the green levies not wiping out winter price rises, not everyone signed up to a big six provider will benefit from the reductions.

npower and ScottishPower have said they would not pass savings on to customers who were not affected by the winter price rises. This includes those who were on fixed price plans when the rises were first introduced.

ScottishPower will make an exception for those whose fixed price plans are more expensive than variable tariff rates, following the price cuts.

EDF Energy and E.ON anticipated the cuts and structured their winter price rises accordingly and will not be making any changes.

British Gas and SSE will pass on cuts to all of their customers.

Price changes chart


Pre-hike bill

Post-hike bill

Hike effective

Bill after levy reduction

Cut effective

Reduction for fixed and variable?

Holding prices?**

British Gas







Yes until Summer 2015

EDF Energy







Yes until 2015








No guarantee but says  ‘likelihood  has receded for next 18 months’ (Spring 2015)








Yes, until Spring 2015







Yes, in part***

Yes, until 2015








Yes, until Spring 2015






Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. **Unless there are significant increases in wholesale costs. ***Those on a fixed price tariff paying more than standard tariff prices will see a reduction on 31stJanuary.

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