The costs of energy

We all know that energy costs money, but have you ever wondered what contributes to its costs?

The costs in your energy bill

Your energy bills consist of two types of costs - fixed (costs you can't control) and non-fixed costs (costs you can control).

So, what do those fixed costs include?

  • Retail - the cost of managing customer accounts, sending out bills and customer service
  • Wholesale - the cost of producing gas or electricity
  • Network - the cost of transporting gas or electricity down pipelines or power lines and of building and maintaining the network infrastructure
  • Green - the cost of programs to save energy and support the development of renewable energy such as wind farms and solar

And the non-fixed costs are:

  • Usage - the cost of the electricity or gas you use, which differs from bill-to-bill depending on how much energy you use.