Climate Policies Now Account For 35% Of Electricity Bills

By Paul Homewood

h/t Mark Rogers


Mark came across this chart on the website of LSI Energy, a company involved in energy procurement and management:




It tells us that environmental costs (RO, FIT, CfD, CM and CCL) now account for 35% of electricity prices.

According to BEIS figures, domestic users consume 108 TWh a year, which based on 26.7 million households works out at 4000 KWh.

I pay 13.2p/KWh for my electricity, including standing charges, so the average annual bill must be around £528. Environmental costs would therefore account for £185pa.


OBR figures suggest a cost of £10.1bn this year, which on a pro-rata basis work out at £132 per household.

Either way, bills are set to rise higher, as LSI note:

Contributing to the rise of non-commodity costs is Renewables Obligations, which are set to continue to rise significantly between now and 2020. It is also estimated that there will be a steep rise for FiT Contracts for Difference (CfD), which will contribute to the increase in non-commodity costs.


November 11, 2017 at 06:09AM

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