FACTORS AFFECTING PRICE

Wholesale cost of supplying electricity and gas to a household for a year has risen by £26 – up from £352 to £378

Green energy policy costs have added an extra £23 to average bills this year – rising from £112 to £135. These costs relate to the renewables obligation. contracts for difference, and capacity market policies

A ‘renewables obligation’ supports large-scale renewable electricity generation – such as wind farms. Energy firms are required to buy a certain proportion of electricity from expensive renewable sources. Annual cost up from £5.4 billion to £6.1 billion

‘ Contracts for difference’ scheme supports and pays lowcarbon generators to develop new projects. Annual cost is up £600 million to £1.3 billion

‘Capacity market regime’ provides a pool of money to be paid to power companies to make sure there is enough electricity to meet demand. Operators are effectively paid to keep power stations open and ready to cover any shortfalls. Annual cost is up from £200 million to £800 million

Smart meters are to be installed in every home and business by – in theory – 2020. The cost is put at £11 billion, which is added to bills at £30 a year