Gas domestic energy costs..a query

[Xenophon PCDGS]

What is the reason given for the 4% environmental and social tax that is shown as part of the overall costs on my gas bill from British Gas. What is this used for..and by whom ?

I note that another cost shown is 7% profit, which does seem rather excessive when you consider how much gas bill prices have risen in recent times.

 

[yorksrob]

The environmental and social costs will include the companies Energy Company Obligation, which includes the cost of insulation and heating improvements for low income households as well as subsidised insulation for hard to insulate (e.g solid walled properties).

Efficiency improvements for low income properties used to be paid for by a mix of general taxation and energy bill charges, however in the last year Government has switched these costs entirely to energy bill charges which is actually more regressive as low income households tend to live in less energy efficient properties and pay proportionately more to heat their homes in the first place.