Households could soon be paying less for energy with Liz Truss set to make an announcement on bills today.

The new Prime Minister reportedly wants to freeze price-capped energy bills at around £2,500 a year - with further details expected this afternoon.

But she is also said thinking of scrapping the "green levy" which forms part of the energy bills you pay.

Energy bills are made up of lots of different parts.

Most of these bills is the cost of the gas and electricity we use, but energy firms also add on costs to run their own businesses.

But part of our energy bills also pay for 'policy costs' - Government tweaks to the energy market.

How much will scrapping the green levy save me?

It is hard to tell.

Green levies are part of wider policy costs - but the term is vague.

Some commentators call all policy costs 'green levies', while others are more selective.

It is also uncertain how much of these policy costs Liz Truss would scrap.

Policy costs pay for things like the smart meter rollout, as well as the Warm Home Discount - a £150 benefit to pensioners and qualifying households on benefits.

It also funds thing like insulation and boiler upgrade schemes.

In total these policy costs currently add £153 a year to the average home on the Ofgem price cap tariff.

Energy experts have previously slammed the idea of scrapping these green levies.

But Paul Johnson, the director of the Institute for Fiscal Studies think-tank, has described the idea as "somewhere between meaningless and pointless”.

He said it only saves households around £11 over the next three months.

Martin Lewis, the founder of Money Saving Expert, who has campaigned for major government action on energy bills, also said removing it would be a "sticking plaster on a gaping wound".

This is how the average price-capped energy bill breaks down:

Wholesale costs - £1,077

This the price that energy firms pay for the gas and electricity they buy.

That cost is then passed on to customers.

It is currently the largest part of any household energy bill by far.

Network costs - £371.06

This cost pays for building, running and maintaining gas pipes and electricity wires.

But it also covers the cost of energy firms that have failed.

Dozens of energy companies collapsed last year as the price of gas began to soar - and the price cap meant firms could not pass these costs on to customers right away.

Other energy firms stepped in to pick up the customers of the failed ones, and we are now all picking that cost up in our bills.

Operating costs - £230.1

This goes towards the costs of running an energy company - things like sending out bills, customer service and paying for offices.

VAT - £94

This needs little explanation - each energy bill has Value Added Tax (VAT) added to it by the Government.

Policy costs - £154.36

This pot of cash pays for Government tweaks to the energy market.

These include things like the smart meter rollout, as well as the Warm Home Discount - a £150 benefit to pensioners and qualifying households on benefits.

Profit before tax - £35

Technically this money is 'earnings before interest and tax', or EBIT.

This is the 'profit' energy companies would make on the average price-capped deal.

Headroom allowance - £22

This is the wriggle room built into price cap energy deals by Ofgem.

It lets energy firms deal with unexpected costs that might crop up.