What makes up an energy retailers cost and how does it affect my electricity bill?

29 Oct 2026, 06:26
Q A Reader Asker

What makes up an energy retailers cost and how does it affect my electricity bill?

A WattWise Team Answered by

An energy retailer’s costs can include buying electricity or gas, paying network businesses to deliver it, metering, government schemes, customer service and billing. Retailers also set prices to cover business expenses and may include a profit margin, so the amount you pay is not simply the wholesale energy cost. Your bill can also vary with usage, location, tariff type, discounts and fees. To compare the overall energy retailer cost, check the retailer’s fact sheet and official comparison tools such as Energy Made Easy, rather than relying only on the advertised usage rate.

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