A new poll commissioned by Utilita, based on a survey of 5,000 adults, reveals that nearly nine in 10 Brits have no clue where the money in their energy bill actually goes. Only 14% could correctly identify the main components such as operating costs, network charges, and policy costs.
Misconceptions about bill breakdown
Respondents believed network costs made up about 12% of their bill, but the true figure is closer to 28%. Supplier profits were overestimated at 13%, while in reality they account for less than 3%. Wholesale energy costs were underestimated at 19%, compared to the actual 38%.
When asked why bills keep rising, 39% blamed global events like wars and trade deals, and 21% said inflation. However, Utilita claims 'non-supplier' costs—including network charges, government policy costs, and household energy debt—now make up almost as much as the energy itself and are still increasing.
Hidden costs and lack of awareness
More than half (56%) of households did not know they are contributing to domestic energy debt through monthly bills, which Utilita says totals around £5bn. Additionally, 60% were unaware they are paying policy costs for government schemes added to bills instead of being funded through general taxation.
Utilita 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."
Proposed solutions and savings
Utilita claims that funding network upgrades through government bonds rather than bill levies could save households at least £108 a year by 2031. Ringfencing VAT from energy bills to fund a social discount could save another £42, with discounts of up to £450 for those most in need.
Nearly half of respondents said the Government should keep costs under control and help struggling households. 66% said they don't believe the Government is transparent enough about non-energy, non-supplier costs. Utilita also claims 63% of the public are unaware that £108 will be added to household bills each year by 2030 to pay 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."
