Chris Norbury, the chief executive of E.On UK, stated that even if the wholesale price of energy were zero, household energy bills would still remain at their current levels due to the significant increase in non-commodity costs, such as network charges and policy levies.

This highlights that the primary drivers of high energy bills are not wholesale gas prices but rather embedded costs related to infrastructure and government policies.

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The Energy Security and Net Zero Select Committee (“ESNZ”) is a select committee of the House of Commons in the UK Parliament.  It was established in April 2023 as the successor to the previous Energy and Climate Change Select Committee.  It scrutinises the policy, spending, and administration of the Department for Energy Security and Net Zero and its public bodies, including Ofgem and the Committee on Climate Change.

On Wednesday, ESNZ held an inquiry to hear oral evidence regarding the cost of energy.  During the inquiry, ESNZ questioned the chief executives of the “Big Six” energy companies: OVO Energy, Octopus Energy, E.ON, Centrica, EDF UK and ScottishPower.

During the inquiry, E.ON’s Chris Norbury said: “If I look at the non-commodity costs – policy costs, network costs – then certainly some of the modelling that we have, suggests that you could get to a position by 2030 where if the wholesale price was zero, bills would still be the same as they are today because of the increase in those non-commodity costs.”

If we move those non-commodity costs off the electricity bill, it would help bring bills down, he said.

Some of the ESNZ Committee members laughed at Norbury’s suggestion.  This is what we’re up against: policymakers who think it’s funny to suggest that they are responsible for the high energy bills that consumers, members of the public and businesses, are having to pay.

You can watch the full ESNZ session on Parliament Live TV HERE.  The clip above begins at timestamp 15:12:44.

Related: Energy bills likely to rise by 20% in next four years, says Britain’s biggest supplier

Rhoda Wilson

While previously it was a hobby culminating in writing articles for Wikipedia (until things made a drastic and undeniable turn in 2020) and a few books for private consumption, since March 2020 I have become a full-time researcher and writer in reaction to the global takeover that came into full view with the introduction of covid-19. For most of my life, I have tried to raise awareness that a small group of people planned to take over the world for their own benefit. There was no way I was going to sit back quietly and simply let them do it once they made their final move.

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