Despite a recent fall in wholesale prices, energy companies are actually earning very little. On average, suppliers make around £9 or £10 a year from their customers who take gas OR electricity from them - and virtually nothing from their dual fuel customers as these accounts are usually available at a discounted rate.
It’s important to remember that the energy itself - the gas or electricity - accounts for less than half of our energy bills. The rest includes things like the costs of providing cleaner, renewable energy and the costs of getting the energy from its source into our homes – and many of these costs are increasing. Suppliers also incur costs in managing customer accounts - sending out bills, managing payments by customers, handling customer contacts and dealing with queries.
We thought it would be useful to give you a simple illustration on the actual breakdown of costs which go into making up an average npower dual fuel household bill. To see the breakdown illustration, please click on 'Price breakdown graph' in our related links below.