Your Gas Bill Explained

The cost of your bill is more than just the price of your energy*

Wholesale energy costs - 55%

This is the basic cost of the energy itself. We purchase energy in advance to make sure that it’s there when you need it. Buying energy in advance also helps us to smooth out what you pay, as wholesale costs can change a lot from day to day.

Delivering the energy to your home - 20%

This is the cost of getting the energy to your home through Great Britain’s network of wires and pipes. These delivery charges are paid to the company that owns the pipes or wires that connect to your home and are agreed with the industry regulator, Ofgem. Charges vary from area to area, but every energy company pays the same in each area.

Looking after your energy account - 18%

These are the everyday costs associated with taking care of your account. They include things like the cost of reading your meter, printing and posting bills, maintaining call centres to answer customer queries and collecting money from our customers. This also includes any profit we make as a company.

VAT & government obligations - 7%

As well as the standard VAT charge of 5% for domestic energy, the government has introduced several obligations that all energy suppliers need to deliver. The cost of meeting these obligations is included in your energy prices.

For further information, please click on the links below:

• Social initiatives
• Carbon Emissions Reduction Target (CERT)