This highlights that the primary drivers of high energy bills are not wholesale gas prices but rather embedded costs related to infrastructure and government policies.
The Energy Security and Net Zero Select Committee (“ESNZ”) is a select committee of the House of Commons in the UK Parliament. It was established in April 2023 as the successor to the previous Energy and Climate Change Select Committee. It scrutinises the policy, spending, and administration of the Department for Energy Security and Net Zero and its public bodies, including Ofgem and the Committee on Climate Change.
On Wednesday, ESNZ held an inquiry to hear oral evidence regarding the cost of energy. During the inquiry, ESNZ questioned the chief executives of the “Big Six” energy companies: OVO Energy, Octopus Energy, E.ON, Centrica, EDF UK and ScottishPower.
During the inquiry, E.ON’s Chris Norbury said: “If I look at the non-commodity costs – policy costs, network costs – then certainly some of the modelling that we have, suggests that you could get to a position by 2030 where if the wholesale price was zero, bills would still be the same as they are today because of the increase in those non-commodity costs.”
If we move those non-commodity costs off the electricity bill, it would help bring bills down, he said....<<<Read More>>>...
