Energy: Prices

The Government is committed to ensuring that the costs of the UK’s transition to Net Zero are fair and affordable for all energy consumers, and the potential impacts on policy costs on technologies and consumers are being fully considered. Policy costs, or levies, are added to energy bills to ensure a fair and transparent way to fund social and environmental policies, whilst easing the financial burden on taxpayers. By driving investment in renewables, they have significantly lowered the cost of renewable electricity production over time, leading to a more affordable and sustainable energy future.

Securing funding for these policies in this way helps to build a secure, affordable, and low-carbon energy system. This shift to renewables is making energy cleaner, more stable, and cheaper in the long run. Ofgem, the energy regulator in Great Britain, administers low-carbon energy and social schemes on behalf of the government and ensures that policy targets are met in an economical and consumer conscious way.