Many folk talking about “green levies” or “green tax” on energy bills. “We could save 25% off our energy bills if we had no green levies”, they say. Stop it. It’s nonsense. Green levies used to make up 25% of electricity bills, but, that was before April, before the energy price cap increase. The social and environmental costs (green levies) on your energy bill are fixed, so, as prices have increased, so the percentage attributed to these costs has decreased. After October, there’ll be around 8% green levies on your electricity bill. Around 3% of the average dual fuel bill will be “green tax”. VAT on energy bills is 5%, so, getting rid of green levies and VAT could save 8% on a dual fuel bill. But, Ofgem has now announced that it’ll review the energy price cap every three months, so you can expect a further rise of energy prices from January 2023, and the “green tax” will be even less in percentage terms.
Ofgem changes energy price cap changes to every three months (was every six months)