The most significant part of our electric bill is based around the wholesale energy cost. This is the item that has the biggest impact on our high energy bills.

The historic and still current wholesale energy pricing model is built around the fact that the final agreement/portion on energy generation determines the strike price that all the generators are paid. This is typically based on the gas price and this is typically the most expensive part of the deal. This means that for example the green generators and nuclear are being paid excessively and therefore they are making excessive profits.

The government has recognised the excessive profit fact and since 2022 has applied the electricity generator levy. This means that the government is getting a revenue stream based on the excessive profits.

So instead of fixing the pricing model it is in the governments interest to let the current model continue. 

So the consumer is paying excessive prices and the government is extracting a revenue stream from this in the form of a levy. So in effect it’s an indirect tax on the consumer and they are unaware of this.

The logical thing to do here would be to fix the pricing model but of course this would mean that the consumer would potentially get lower bills but the government would loose its revenue stream.

So naturally the government wants the current set up to continue.

I believe that Ofgem are in collusion with the government over this item.

The government needs to come clean on this and stop pretending there is nothing they can do they consistently blame the market, the war, brexit, green energy and anything else other than an out of date pricing model

The above facts are in the public domain but you need to dig around to put the big picture together.

The government needs to come clean and reduce our bills and not raise money via the levy for other purposes at our expense.