With ongoing scrutiny of household energy costs and more recently retail costs, it is timely to revisit the structure of electricity bills and the cost components that drive them. While price trends often attract public attention, the composition of a bill reflects a mix of wholesale market outcomes, regulated network charges, environmental policy costs, and retailer operating expenses.
Understanding what goes into an energy bill helps make sense of why prices vary between regions and how default and market offers are set. We break down the main cost components of a typical residential electricity bill and look at how customers can use comparison tools to check if they’re on the right plan.
