Policy costs are not to blame for electricity price hikes in the UK, a study by the UK Energy Research Council has concluded.

Despite being routinely cited as a contributing factor for price rises by the ‘Big Six’ energy suppliers and others, the new report – dubbed ‘What’s in a bill? How UK household electricity prices compare to other countries’ – found that policy costs in the UK were the lowest of European countries analyses and, in actual fact, represented “good value for money”.

Array of solar panels on sloped roof of detached house on an overcast morning

The report has set out to perform an in-depth assessment of domestic energy prices, comparing them to those in Germany, France, Sweden and Australia.

And its findings paint a different picture to those often portrayed by energy suppliers.

The UKERC found that while wholesale prices are relatively high in the UK, there is no evidence that policy costs, including those driven by environmental programmes like renewable subsidies, are the primary driver for price hikes.

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