Cost of living: How your energy bills are calculated and why they've gone up

With households across the country being financially squeezed from every direction, the rise in energy bills are a cause for concern for thousands of families. The beginning of the month brought uneasiness for many as the increase in the energy price cap - the maximum companies are allowed to charge - increased the cost of the fuel and the standing charge users pay every day

Amid warnings of a further jump later this year in October, energy bosses have called for more Government support for households facing a 'truly horrific' winter. Michael Lewis, chief executive of E.ON, warned that up to 40 per cent of households could be in fuel poverty by the end of the year.

He also recently told MPs his firm was 'expecting a severe impact on customers' ability to pay,' adding that he expected debts of customers to rise by 50 per cent - or £800m. Around one in 10 per cent of UK households are reportedly suffering from fuel poverty at the moment.

READ MORE: Citizens Advice: How to use a food bank if you're struggling to feed your family

Amid all this uncertainty, we've taken a look at what goes into making up the total cost of this bill, alongside the gas and electricity itself.

ChronicleLive reports that there was huge pressure on suppliers in 2021 as wholesale prices increased substantially, resulting in the UK's energy price cap rising by just under 50 per cent in April. The invasion of Ukraine by Russia, which is the world's largest natural gas exporter, has only made matters worse.

Energy providers have also been forced to shoulder the costs after 29 energy providers went bust in 2021, including Bulb Energy, which had 1.7 million customers. As millions of customers were absorbed by the remaining energy providers such as