8 October 2026

Every quarter, The MCS Foundation releases an updated report setting out how social and environmental levies affect electricity bills, based on latest price cap data.  

The latest version of this report highlights that electricity remains disproportionately expensive compared to gas. Under the current Ofgem price cap, social and environmental levies account for around 8% of the average household electricity bill – far more than the 3% applied for gas.

While the Government has taken action to cut the cost of electricity – including removing VAT from electricity bills – these measures are only temporary.

We are continuing to call on the Government to permanently move social and environmental levies off electricity bills and fund them through general taxation. Shifting these levies to general taxation will protect lower income households, save every household money on their energy bills and support the adoption of low-carbon heating.