androidangle-left2angle-right2appleblogenvelopefacebookgithub_24Icon/contact/chat/ic_chat_24Icon/electricity/electricity/ic_electricity_24Icon/energy/ic_energy_24Icon/gas/gas/ic_gas_24Icon/home/ic_home_24Icon/lost-search/ic_lost-search_24Icon/device/phone/ic_phone_24ic_solid-arrow-left_24ic_solid-arrow-right_24ic_spinner_24Icon/profile/ic_username_24cabcalculatorcredit-cardenvelopefolder-openhomelaptopovopagelinesphonesmartmetertoggle-onlinkedinplusstackoverflow_24star2star-halftwitteryoutubeforumlegacy-icon-communities-exitquote-open
search-small user-small hamburger-menu close scroll-down star2 blog linkedin facebook twitter instagram

Energy bill breakdown

Discover the different elements that make up your energy bill.

What makes up my monthly energy bill?

Your monthly bill doesn’t just cover the energy you’ve used, but network and metering costs, social and environmental obligations as well as supplier overheads and VAT. In fact, only a third of your bill actually pays for the energy you use.

Here’s an OVO energy bill breakdown for a dual fuel customer: 

  • Wholesale costs – 39%
  • Network costs – 26%
  • Environmental & social costs – 13%
  • Metering costs – 6%
  • Suppliers overheads and margin – 12%
  • VAT – 5%

Here’s an OVO energy bill breakdown for electricity-only customer: 

  • Wholesale costs – 33%
  • Network costs – 26%
  • Environmental & social costs – 22%
  • Metering costs – 4%
  • Suppliers overheads and margin – 11%
  • VAT – 5%

Figures correct as of 01/10/2017 based on a medium user in a typical household using 12,500 kWh of gas and 3,100 kWh of electricity.

Related FAQs

Annual statements

Discover what they are – and why we send them.

Energy bills explained

Find out how to read your OVO energy bill – and what all the different bits mean.

OVO Forum

It’s our online community. A place where you can ask questions and get answers whenever you need them.

What do all those things actually mean?

This should explain everything...

Wholesale energy costs: this is what we pay for the energy we deliver to your home. We buy it from gas producers and electricity generators on the wholesale market. Prices vary and can go up and down very quickly depending on what’s happening around the world with base fuels such as gas, oil or coal.   

Network costs: the pipes (gas) and wires (electricity) that deliver the energy to your home. We have to pay a regulated fee to the companies that own them for every bit of energy our customers use. This money goes towards maintaining this huge and intricate energy network. In fact, if you stretched all the pipes and wires out it could reach to the moon and back.

Social and environmental obligations: just like all of the bigger suppliers, we have to help pay for government energy policies. These include the support mechanism for low-carbon technology and some of the schemes we help administer that support vulnerable customers or improve energy efficiency in homes around the UK.

Metering costs: this covers the cost of installing and maintaining your actual meter in the home.
Supplier overhead and margin: this is the part of the bill that goes towards customer service and running an energy company. We’re committed to keeping this part of your bill as low as possible.

VAT: this is a set fee of 5% on all domestic energy bills

Related FAQs

Payments

Find out everything you need to know about Direct Debits – and every other way to pay.

Debt and energy assistance

Find out ‘what’ to do and ‘where’ to get support when you can’t pay your bills.

Refunds

Find out how to get one if your balance is too high.

Annual statements

Discover what they are – and why we send them.

Winter Fuel Allowance

Discover what it is, how to claim it – and lots of other helpful stuff.

Energy bill breakdown

Discover the different elements that make up your energy bill.

OVO Interest Reward

OVO Interest Reward is where we pay you interest on your credit balances.

The Warm Home Discount (WHD)

Find out what it is, how you get it – and everything in between.

Cold Weather Payments

Find out what they are, how you qualify – and everything else you need to know.

Statement history

Find out how to get a copy of your statement – and how to ‘go paperless’.

Feed-in-tariffs

From what they are and how to apply, to everything else you need to know.

Need help filling in your FIT form?

No problem. Help is right here!

Direct Debit reviews explained

Everything you need to know about Direct Debit reviews.

Setting up and editing your Direct Debit

See how you can set up your new direct debit or edit your existing details.

How do Direct Debits work?

See how we calculate your Direct Debit amount and why it might change over the course of your contract.

Online Discount

Discover how much you can save when you manage your OVO account completely online.