Energy bills: Where does my money go?

By Kevin Peachey
Personal finance reporter, BBC News

  • Published
Energy saving light bulb with cashImage source, Getty Images
Image caption,
An energy bill is one of the biggest outgoings in any household budget

The "big six" energy firms now face a lengthy inquiry into whether their dominance prevents effective competition.

The decision comes after lots of political debate over the future of the industry.

Labour leader Ed Miliband pledged that gas and electricity bills will not go up for 20 months if Labour wins the 2015 election.

Then Prime Minister David Cameron made changes that cut the amount of green levies which, in turn, brought a reduction in consumers' bills.

Energy supplier SSE then said that it was bringing in its own price freeze until 2016.

So where exactly does customers' money go and what might be the effect of a price freeze?

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