ChartJavascript is required to render chart Breakdown of a gas bill.Source: Companies’ consolidated segmental statements.Information correct as of: August 2020 This chart shows an estimate of the different costs that make up an average gas bill for a typical domestic customer of the large legacy suppliers. It is based on reported data from the large legacy suppliers’ annual Consolidated Segmental Statements. Click the ‘more information’ tab above for information on our methodology. For information on supplier prices and profits, please see our page Understanding the profits of the large legacy energy suppliers. Policy Areas:Electricity - retail markets Gas - retail markets Data Table Breakdown of a gas bill Annual costPercentage Wholesale costs46.24% Networks25.64% Operating costs20.41% Environmental and social obligation costs1.86% VAT4.76% Supplier pre-tax margin-0.49% Other direct costs1.58% More information Methodology To estimate the breakdown of an average gas bill, we: Took the sum of each category of cost (e.g. wholesale, network etc) and the pre-tax supply margin reported by the suppliers for gas. Divided the gas sum by the total number of customers and added VAT at 5%. Please note that chart calculations are drawn from suppliers’ reported total costs and total customer numbers, irrespective of tariff type. The chart will therefore reflect a mixture of the costs to supply dual fuel and single fuel customers. As such, the bill breakdown is an approximation – values may differ, for example, if gas-only customers use more gas than those customers who are also supplied with electricity. The data presented is based on the latest available Consolidated Segmental Statements (CSS). It may differ from the data in the suppliers externally published CSS. This is because we have made some adjustments to the way exceptional items are reported to improve comparability. Figures relate to the suppliers’ financial years. Five of the companies (British Gas, EDF, E.ON, npower and ScottishPower) have financial years ending in December, whereas SSE’s financial year runs from April to March. Date correct August 2020 Policy areas Electricity - retail marketsGas - retail markets