Nearly nine in 10 Britons are unaware of how their energy bill money is allocated, according to research commissioned by energy supplier Utilita. A poll of 5,000 adults found only 14% could correctly identify the main components of an energy bill, such as operating, network, and policy costs.
Misperceptions About Rising Energy Prices
When asked why energy prices are rising, 39% blamed geopolitical factors such as wars and trade deals, while 21% pointed to inflation. However, Utilita said 'non-supplier' costs — including networks, policy, and debt — now account for almost as much as the energy itself and are continuing to rise.
Respondents also tended to misjudge the size of each element. Consumers believe network costs make up 12% of a typical bill, but Utilita says the figure is closer to 28%. Supplier profits were overestimated, with people putting margins at 13%, despite reports that profits are less than 3%. Wholesale energy costs were then underestimated, with respondents guessing 19% compared with an estimated actual share of 38%.
Hidden Charges in Energy Bills
The poll also suggested many people are unaware of other charges included in bills. It found 56% did not realise customers are contributing to domestic energy debt through their monthly payments — which Utilita says totals around £5 billion — while 60% were unaware they are paying policy costs linked to government schemes that suppliers are required to collect via bills rather than through general taxation.
Utilita's Fairer Energy Campaign
The research was commissioned to raise awareness of Utilita's Fairer Energy campaign. CEO Bill Bullen said: “We want the nation to better understand what is pushing up energy bills, and what needs to change to bring down costs for households and create a fairer way to fund the energy transition.”
He added Utilita estimates funding network upgrades through government bonds rather than levies on bills would save households at least £108 a year by 2031, and that ringfencing VAT from energy bills to fund a social discount could save bill payers a further £42, with discounts of up to £450 for those most in need.
Public Demand for Government Action
Nearly half of respondents said it should be the government's job to keep costs under control and support households struggling to pay. Moreover, 66% don't believe the government is transparent enough about the non-energy and non-supplier costs added to their energy bills.
This lack of clarity is underscored by the fact that 63% of the public are unaware that £108 will be added to household energy bills annually by 2030 to fund necessary upgrades to Britain's gas and electricity grids.
Call for Policy Changes
Addressing these concerns, Bullen added: "Better understanding of where our energy costs are coming from is just the first step to bringing them down. Following from this, there are clear and actionable steps that could be taken to ensure everyone is better off. Simple things like unlocking access to low-carbon technology installations for low-income households and moving the costs of government schemes off bills and into general taxation could help bring down energy costs—which is what we are calling for."
