BRITAIN’S households are being hit by obscure energy charges that are keeping bills at record levels, campaigners have warned.
A Warm This Winter report examined 14 charges that are being added to customers’ bills, such as “non-locational demand residual banded charges, available supply capacity charges, electricity systems operator internal allowances and ancillary services costs.”
Also hidden in the charges are “line losses,” which set out the amount of energy lost while transmitting electricity around the network.
Such costs have led standing charges to surge by 119 per cent, an average of £194 a year for every household since 2021/22.
The report reveals that operators who maintain the grid keep money charged to customers but do not spend it.
Between 2015 and 2022, Distribution Network Operators spent £933 million less than they forecast, yet only gave around half of that money back to consumers.
End Fuel Poverty Coalition co-ordinator Simon Francis said: “There must be a review into how we have arrived at so many covert charges and Ofgem must improve transparency over the calculation of standing charges.
“Of particular concern is the system whereby we are paying upfront for vital infrastructure upgrades which could help bring down electricity bills, but which are then not delivered.”
Fiona Waters of the Warm This Winter campaign added: “Our energy bills are still forecast to remain well above 2021 levels for the rest of the year and the vital grid infrastructure upgrades needed to bring electricity costs down are not being delivered.
“Perversely, the failure to upgrade and maintain the grid then results in line losses, which consumers also have to pay for via their bills.”