Green Policies Cost More Than The Gas Does

  • Date: 04/08/17

British Gas believes that the cost of complying with green legislation will soon cost more than the gas it supplies to customers

British Gas’s row with the government deepened after the company claimed that energy policies would soon account for more of an electricity bill than wholesale costs.

Britain’s biggest energy supplier has been at loggerheads with ministers and Ofgem, the industry regulator, since announcing on Tuesday that it was raising electricity bills by 12.5 per cent.

The company, part of Centrica, has been under pressure to justify its claims that rising policy and network costs were to blame. It said these had increased by £98 since it last raised prices at the end of 2013.

Yesterday it published figures claiming the cost of government policies on electricity bills would hit £165 per household next year, up from £81 in 2014. It said wholesale electricity costs had fallen from £170 to £134 over the same period.

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