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Energy Invoice Cost Breakdown

Detailed below is the breakdown of what is included in your energy invoice for both your standing charge (p/day) and cost of energy (p/kWh).

These charge types fall into five main categories;

Wholesale Market costs

Cost to purchase the volume of energy you require

Environmental and Social Obligation

Levies or taxes determined by Government to support ‘Net Zero’ and ‘Clean Power’ objectives

Network Charges

Distribution and transmission charges which include the ongoing maintenance, operation and required modernisation of the network

Meter Operating Costs

Meter Equipment Managers charge installation, provision and maintenance for all energy equipment at site

General Operating Costs

Supplier cost to serve

The table below shows a detailed cost breakdown of the five charge type categories. It will show the name of the industry charge, whether the industry charge is included in the standing charge (p/day) or the cost of energy (p/kWh), and shows the administrator (receiver) of the industry charge or scheme for example HMRC or Ofgem.

Energy Invoice Cost Breakdown

Gas Invoice		Electricity Invoice
Standing Charge If the cost is passed through as a p/day cost it will typically be added to the standing (daily).	Consumption Rate If the cost is passed through as a p/kWh cost it will typically be added to the rate or cost of gas.	Standing Charge If the cost is passed through as a p/day cost it will typically be added to the standing (daily).	Consumption Rate If the cost is passed through as a p/kWh cost it will typically be added to the rate or cost of electricity.
Environmental and Social Obligation - includes government schemes and levies to pay for different environmental initiatives Administrator
Green Gas Levy (GGL) - Ofgem	Climate Change Levy (CCL) - HMRC		Contracts for Difference (CfD) - LCCC
Voluntary Carbon Offset (VCO) - Energy Market			Capacity Market Supplier Charge - Electricity Settlements Company
Renewable Gas Guarantees of Origin (RGGO) - GGCS			EII Support Levy (from April 2025) - Elexon / LCCC
			Climate Change Levy (CCL) - HMRC
			Nuclear RAB (Regulated Asset Model) from 2026 - TBC
			Renewables Obligation (RO) - Ofgem
			Feed in Tariff (FiT) - Ofgem
			Renewables Energy Guarantees of Origin (REGO) - Ofgem
Network Provider Charges - includes costs for the operation, management and up keep of the gas and electricity grid Administrator
Fixed Customer Charge (CFI) - CDSP / Network Provider	Unidentified Gas (UIG) - CDSP / Network Provider	Transmission Network Use of System (TNUoS) - NESO	Transmission Network Use of System (TNUoS) - NESO
Customer Capacity (CCA) - CDSP / Network Provider	System Commodity (ZCO) - CDSP / Network Provider	Distribution Use of System (DUoS) charges - Network Provider	Distribution Use of System (DUoS) charges - Network Provider
System Capacity (ZCA) - CDSP / Network Provider	Exit Commodity (NCO) - CDSP / Network Provider		Assistance for Areas of High Electricity - NESO
Exit Capacity (ECN) - CDSP / Network Provider			Balancing Services Use of System (BSUoS) - NESO
			Residual Cashflow Reallocation Cashflow - Elexon
Meter Operating Costs - includes equipment and reading collection charges Administrator
Automated Meter Read (AMR) Asset Rental Charge - AMR Service Provider (ASP)		Automated Meter Read (AMR) Asset Rental Charge - AMR Service Provider (ASP)
Meter Reading Charge - Meter Reading Agent (MRA)		Meter Reading Charge - Meter Data Retriever (MDR)
Meter Equipment Manager Charge - MEM		Meter Equipment Manager Charge - MEM
Datalogger Reading and Rental Charge - CDSP		HH Consumption downloads - Data Collector (DC)
Wholesale Market Costs - Purchase of Gas from Contract start date for contract duration Administrator
	Cost of Gas - Energy Market		Cost of Electricity - Energy Market
General Operating Costs Administrator
Cost to Serve - Supplier	Balancing Fee - Supplier	Cost to Serve - Supplier	Elexon Charge - Supplier
			Balancing Fee - Supplier

A visual representation of the percentage of the energy invoice that falls under the main categories. This is based on an average Small Business consumer on a fully fixed contract priced in 2024 (this average energy invoice does not include VAT).