UK Energy prices 2021 and now - anatomy of indirect taxes, "standing charges" and the “net zero” rip-off
It’s been a long four years as various UK governments have been busy hiding the indirect taxes levied on the British public to fund the ludicrous “net zero” policies.
Here I show details of the sky rocketing UK energy bills over just the last four years - switching from a 2-year fixed price deal in 2021 to the current variable rate (April 2025).
Keep in mind that all energy bills are subject to an additional Value Added Tax (VAT) of 5%. There are also around 28,4 million households in the UK -households paid around £1,700 a year in 2024 - that’s a total energy bill of clos to £50 billion a year (and has gone up by 20% since last year - an extra £10 billion pounds). This is the result of the cartel relationship between the power companies and the UK government - a socialist/fascist cartel that does not allow “fair” competition on a level playing field - new entrants are frozen out and the “market” is dominated by super taxes (80%) on North Sea oil and gas - and huge subsidies for the useless and ugly “renewable green” energy.
Not that the argument for the “energy transition” has switched from “carbon emissions” - which has been well and truly lost - to “energy security” - which is fallacious and equally insane. Here is growing attention on the cost of decommissioning the millions of tons of decaying wind turbines and solar panels - down to th deep foundations that have penetrated the land to a depth of dozens of metres. There is even talk of panting the wind turbines black, to prevent the decimation of birds.
The daily standing charge is also levied and is intended to cover the following - per Brave AI:
“The standing charge on UK energy bills covers the fixed costs associated with maintaining the energy supply infrastructure and providing customer services. This includes the cost of keeping your home connected to the energy network, carrying out meter readings, maintenance, and other related charges. Additionally, part of the standing charge goes towards the cost of government initiatives aimed at helping vulnerable homes and reducing carbon emissions.”
The exact part of the standing charge going to “reducing carbon emissions to vulnerable homes” is no disclosed on the bill.
TLDR version:
Electricity prices have increased from 20.815 pence per kWh to 26.479 pence per kWh - an increase of 27.2%. The standing charge for providing the electricity has increased from 17.1 pence per day to a whopping 46.197 pence per day - an increase of 170%.
The annual electricity standing charge is now £168,62 a year.
Gas prices have increased from 5.484 pence per kWh to 7.072 pence per kWh - am increase of 29.4% and th standing charge has been increased from 14.28 pence per day to 32.959 pence per day - an increase of 130.8%.
The annual gas standing charge is now £120.30-a year.
The total standing charge is therefore around £290 a year.
Note the price of the overall bill is enhanced further by VAT of five per cent on the increased prices for the total bill.
Note also that th price to UK households bears no relation to the cost of extraction of the natural gas.
Now, the price of electricity is muddied by the amount of renewables fed into the grid and all the charges for ether switching off or switching on wind turbines and solar panels. The price of gas though is subject to clear signals from international markets.
Here is the price of natural gas futures over the last four years:
UK Natural Gas - Price - Chart - Historical Data - News
You can see the impact of the Russia/Ukraine war on prices that are now close to those prevailing in 2019.
So, what is the reason for UK households to be charged prices that are 30% higher?
Could it be that the 20% of LNG shipped in from the US are the reason?
Here’s the actual bills to households for a one-bedroom apartment in Central London between 2021 and now.
Starting electricity prices in 2021 - from an email dated Fri, 10 Sept 2021 at 14:43
About this electricity tariff
v
And now, after 4 years - from an email dated Tue, 11 Mar at 14:01
Back in 2021:
And now in 2025
Now for the gas bill.
2025 gas prices
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Onwards!!!