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Why are UK electricity bills so expensive?


I recently built a website that breaks down the cost of a UK electricity bill. It's interactive, and I'd recommend visiting it before reading this post. Check it out here: electricitybills.uk Here are three interesting things about the data. #1: The wholesale power cost is only one third of

Contracts for Difference are the UK's flagship scheme for supporting renewables, and they will add an increasing cost to electricity bills. The Capacity Market pays firm generation & demand response to be on standby, to prevent blackouts. Schemes like the Feed in Tariff did not correct quickly enough when solar prices fell, leading to spiralling policy costs that were completely decoupled from market dynamics.

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Photo of UK electricity bills

UK electricity bills