![\"An](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/3_Woman-In-Gloves-With-Laptop-And-Bill-Trying-To-Keep-Warm-By-Radiator-During-Cost-Of-Living-Energy-.jpeg\")
An energy bigwig has warned non-commodity costs could drive up bills by another 20% (stock)(Image: Daisy-Daisy via Getty Images)<\/p>\nMPs have heard calls for ‘radical’ action in the face of an every increasing rise in non-commodity costs on energy bills<\/p>\n
17:56, 15 Oct 2025Updated 19:56, 15 Oct 2025<\/p>\n
An energy bigwig has warned non-commodity costs could drive up bills by another 20% (stock)(Image: Daisy-Daisy via Getty Images)<\/p>\n
Energy bills could surge by another 20% over the next five years – even if the cost of gas and electricity itself halved, an industry boss has warned.<\/p>\n
MPs were told so-called \u201cnon commodity\u201d costs were one of the biggest factors driving-up prices for millions of households. These include the cost of getting energy<\/a> around the country, but also a raft of government schemes and levies, including those designed to achieve Labour\u2019s net zero ambitions. The add-ons account for around \u00a3300 of the typical household\u2019s annual bill.<\/p>\n Rachel Fletcher, director of regulation and economics at Octopus Energy<\/a>, Britain’s biggest supplier, called for \u201curgent\u201d action. \u201cIf we continue on the path we are on right now, in all likelihood electricity prices for a typical household are going to be 20% higher in four or five years than they are now, and that is even if wholesale prices halve,\u201d Ms Fletcher told the Commons energy select committee. \u201cWe\u2019ve got to do something radical to address it.\u201d<\/p>\n The warning comes just weeks after regulator Ofgem\u2019s energy price for millions of households rose to \u00a31,755 a year.<\/a> Adding 20% to the electricity component of that could increase bills by average \u00a3181 a year.<\/p>\n One suggestion would see gas power plants removed from the wholesale electricity market and placed into a \u201cstrategic reserve\u201d, which could save consumers an estimated \u00a35billion a year.<\/p>\n Simone Rossi, chief executive of EDF UK, said the cost of serving UK customers was double that of its home market of France. \u201cIt is driven by the fact that we (UK) have a very complex regulation,\u201d he said. Chris Norbury, boss of energy giant E.ON, said: \u201cSome of the modelling we have suggests you could get to 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.\u201d<\/p>\n Simon Francis, coordinator of the End Fuel Poverty Coalition, said the prospect of near \u00a32,000 a year bills was \u201chugely concerning.\u201d He added: \u201cWe have been warning about this and how you pay for the investment that is needed. There must be a better way so as that is not front-loaded onto consumers.\u201d<\/p>\n A Department for Energy Security and Net Zero spokesperson hit back: \u201cWe categorically reject this speculation. Wholesale gas costs for households remain 75% higher than they were before Russia<\/a> invaded Ukraine<\/a> in 2022, and the main reason energy bills remain high. The only way to bring down energy bills for good is by making Britain a clean energy superpower, which will get the UK off the rollercoaster of fossil fuel prices and onto clean, homegrown power that we control.\u201d Energy Secretary Ed Miliband<\/a> this week predicted that clean power will significantly lower the wholesale cost of electricity.<\/p>\n It came as the boss of British Gas owner Centrica recommended hard-up customers should pay nothing for their energy. Chris O\u2019Shea told the committee: \u201cThere are people who can\u2019t afford to pay anything for their energy bill and if we had the right data they would simply not receive a bill, and those who of us can afford to pay more would pay more.\u201d<\/p>\n Mr O\u2019Shea suggested splitting households into different income brackets, adding: \u201cYou would have bands and those on a certain amount of income and a certain amount of expenditure would have no bills and it would go up in bands and those with a lot of income would pay substantially more for their energy.\u201d<\/p>\n Ms Fletcher said 73% of households are worried about paying their energy bills<\/a>. She added: \u201cYou have to get to households who are earning \u00a3100,000 or more before you see that concern start to fall off. The scheme Chris has said would, unless dealing with a very small number of people spread over a very large number of people, just tip more into that position where they are really at the edge of being able to afford.\u201d<\/p>\n Those giving evidence repeated the call for better sharing of data from the Department for Work and Pensions<\/a> to provide targeted help for those customers most in need.<\/p>\n![\"Energy](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/2_Woman-holding-cash-in-front-of-heating-radiator-Payment-for-heating-in-winter-Selective-focus.jpg\")
Energy debts are predicted to hit \u00a35billion by Christmas because of the accumulated impact of price rises (stock)(Image: Getty Images\/iStockphoto)<\/p>\n![\"Chris](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/3_centrica-group-chief-executive-chris-oshea-was-handed-a-bumper-\u00a382m-pay-deal-in-2023-andrew-millig.jpeg\")
Chris O’Shea, chief executive of British Gas owner Centrica, has suggested the poorest households pay nothing for their energy(Image: PA Wire\/PA Images)<\/p>\n