What is energy tax and how is it calculated?

What is energy tax?

Energy tax is a per-kWh (and potentially per m³ of gas) surcharge you pay on top of the market price and Leafy Energy’s markups. Its main goal is to encourage conscious energy use.

How is energy tax calculated?

• Your kWh consumption over a period is summed up.
• Fixed per-kWh rates are applied to different consumption bands.
• The result is your total energy tax, shown as one or more lines on your invoice.

Dynamic tariffs and energy tax

Although your Leafy Energy hourly tariffs vary, energy tax is usually calculated over your total kWh in a given period, not per hour. That’s why it appears as aggregated tax lines rather than individual hourly items.

In the Leafy Energy app you can use a cost filter to see how much of your total bill is made up of energy taxes.