The Martin Lewis Podcast Martin v Ofgem boss: Why are energy bills so high (is it green levies?) | Scrap standing charges | Is the Price Cap a rip-off?
Oct 30, 2025
In this insightful discussion, Jonathan Brearley, Chief Executive of Ofgem, breaks down the complexities of household energy bills. He explains the components of energy costs, including wholesale prices and policy levies, while addressing the rising network costs driven by maintenance and renewable integration. Brearley also discusses the implications of standing charges, potential reforms, and how renewables may reduce prices long-term. Martin Lewis probes into O2's price hikes and regulatory transparency, ensuring consumers understand their rights amid rising energy costs.
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Act Fast If O2 Raises Prices
- If O2 notifies a mid-contract price rise, use the 30-day penalty-free exit to switch suppliers or negotiate a better deal.
- Compare resellers on O2's network if you want the same signal but cheaper plans before April increases take effect.
Rules Versus Industry Responsibility
- Regulators must balance detailed rules with industry conversations because endless rule-tightening creates a huge rulebook.
- Jonathan Brearley argues combining principle-based oversight with industry responsibility can be more effective than prescriptive rules alone.
What Makes Up Your Energy Bill
- For a typical dual-fuel customer, about 40% of the bill is wholesale energy and 25% is networks.
- Around £12 of every £100 covers policy (mostly green support and insulation) and about £2.50 is allowed profit.