A poll of 5,000 adults commissioned by Utilita reveals that nearly nine in 10 Britons are unaware of how their energy bills are calculated. Only 14% could correctly identify the main components, including operating, network, and policy costs. When asked about rising prices, 39% blamed geopolitical factors such as wars and trade deals, while 21% pointed to inflation.
Non-Supplier Costs Nearly Equal Energy Costs
Utilita highlights that 'non-supplier' costs—covering networks, policy charges, and bad debt—now account for almost as much as the energy itself and continue to rise. Respondents estimated network costs at 12% of their bill, but the actual figure is closer to 28%. Supplier profits were overestimated at 13%, while the real figure is under 3%. Wholesale energy costs were underestimated at 19%, compared to the actual 38%.
Hidden Costs in Energy Bills
Many households are unaware of additional charges. Over half (56%) did not know that customers contribute to domestic energy debt, which Utilita claims totals around £5 billion. Additionally, 60% were unaware of policy costs for government schemes added to bills instead of being funded through general taxation.
Utilita's Fairer Energy Campaign
The research supports Utilita's Fairer Energy campaign. CEO Bill Bullen stated: '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 estimated that funding network upgrades via government bonds rather than levies on bills could save households at least £108 per year by 2031. Ringfencing VAT from energy bills for a social discount could save a further £42, with discounts up to £450 for those most in need.
Public Opinion on Government Role
Nearly half of respondents believe the Government should control costs and support struggling households. Two-thirds (66%) said the Government is not transparent enough about non-energy and non-supplier costs. Moreover, 63% were unaware that £108 will be added to household energy bills annually by 2030 for grid upgrades.
Mr. Bullen added: 'Better understanding of where our energy costs are coming from is just the first step to bringing them down. 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.'
