Price Rises, Weasel Words and Green "Taxes"

So SSE was the first one to blink an announce energy price rises of about 8.2%. And guess what? They implicated "green taxes" stating that they had risen by 13% whereas wholesale energy costs have risen by a mere 4%.

But hang on. This is the usual percentage vs absolute con.

Information from DECC shows that the breakdown of the average £1267 dual-fuel energy bill is
Wholesale energy £597
Network costs £257
Other supplier costs and margin £240
VAT £60
Green and social policies £112.

So what is 4% of £597? Yup, it's £24.
And what's 13% of £112. Well, it's £15.

So, yes, there is an uplift from green and social policy costs and levies but in absolute terms it is still less than the uplift from wholesale price movements.

Note that I used the term "green and social policy costs" 'cos that's what they are. ECO and the Warm Home Discount, for instance, are not about low carbon generation, they are about keeping the poor and the old a tad warmer in the winter.

So, whatever happens you will be paying more for your energy. The question is, do you want to spend that money on low carbon sources or fossil fuels; and how much should you be covering social costs? Just don't take energy company froth at face value.