By Paul Homewood
How much of our electricity bills goes to pay for “green crap”?
OFGEM kindly provided this analysis last year:
This information is not theoretical, it is derived from audited accounts data from the big energy suppliers, published in their annual Consolidated Segmental Statements, with allocation of expenses meeting strict rules.
I have downloaded the 2019 statement from Centrica, which closely matches the OFGEM table:
Looking at the Electricity Supply column, Environmental Costs works out at 23% for domestic, and 27% for business, an average of 24%. I presume the lower percentage for business reflects the fact that the selling price is lower.
But more significant is the cost of environmental levies per MWh. Domestic is £43/MWh, and business is £39/MWh.
Based on annual household usage of 5500 kwh, typical for a 3 bed house, this equates to £236. VAT would be extra.
We can cross check these numbers against the OBR figures:
|2.7 Environmental levies|
|Contracts for difference||1.0||1.7||2.2||2.5||2.7||2.9||2.8|
|Green gas levy||0.0||0.0||0.0||0.0||0.0||0.1||0.1|
|Feed in Tariffs||1.5||1.5||1.6||1.6||1.6||1.7||1.7|
|Memo: Expenditure on renewable heat incentive (RHI)||0.8||0.9||1.0||1.1||1.1||1.1||1.1|
|Note: The ‘Environmental levies’ line above is consistent with the ‘Environmental levies’ line in Table 3.3 of the March 2020 Economic and fiscal outlook.|
|1 The ONS have yet to include capacity market auctions in their outturn numbers. If they were included, they would have been £0.2bn.|
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February 15, 2021 at 12:57PM