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Your bill explained
Energy bills can sometimes seem complex, and it’s not always clear what consumers are paying for. Here you can find out how much of your bill goes towards the cost of running the Electricity Transmission network, and how that cost breaks down.
Breaking down your electricity bill
The Electricity Transmission part of your bill, which is subject to approval by the energy regulator, Ofgem, covers the cost of building and maintaining the network. Our transmission network cost in 2021/2022 was £20 of the average annual household bill of £662 – that’s around 3.0% of your total annual bill.
*We use Ofgem’s methodology to report the impact of our charges. The figures quoted are based on 2021/2022.
How the £20 cost breaks down
The £20 of National Grid costs can be broken down as follows:
**When we invest in the network, the cost is spread so consumers pay over the life of the asset. This portion relates to past investment.
Download our guide to understanding your bill
You can view or download our guide that explains how the electricity transmission portion of your bill is calculated.
The guide also describes how our costs break down, how they’re affected by regulation, how our revenue is collected, and how we’ve worked out the amount that’s included in householders’ bills.
What role does National Grid play in my energy bill?
We receive a lot of questions about how your household energy bills are made up, and which parts of your bill relate to National Grid.
The bill you receive from your energy supplier is made up of a number of separate charges. Some of these charges are based on the different stages through which electricity makes its way from the producers to your home, so we explain this journey and where National Grid fits in.
Where does electricity come from? The journey of electricity to your home
Electricity plays a huge part in our lives. We use it at home, at work, in our schools and hospitals. It helps to bring us light and heat, and it powers the tech we’ve come to rely on.