Data released by the energy regulator Ofgem shows that energy wholesale costs have remained broadly flat over the last year, despite the big six utilities partly blaming their recent price hikes on increasing global wholesale costs.
British Gas, SSE, Scottish Power and Npower have all increased prices in recent weeks and have stated rising wholesale costs as a reason, along with the cost of delivering energy and environmental polices.
In October 2012, the wholesale cost of energy in an annual average bill accounted for £600, according to Ofgem’s Supply Market Indicators (SMI). Over the last year, this has increased by just £10. However, the average customer bill has gone from £1,250 to £1,320 over the same period.
In a statement, SSE said that buying energy in global markets had increased by 4% for a typical dual-fuel customer. Scottish Power also stated it had seen a 7% increase in wholesale costs.
The SMI figures will place additional pressure on energy suppliers to justify their bill increases. Suppliers have said that the SMI is inaccurate.
A British Gas spokesperson told the Financial Times, “The prices that individual suppliers pay depends on their own hedging strategies, and the Ofgem methodology is, at best, an approximation of what those hedging profiles are.”
The increases to customer bills from suppliers range from 8.6% to 10.4%. The other two big six companies, E.ON and EDF Energy, are expected to follow suit and announce price increases.
The price hikes have prompted David Cameron to launch a review into green energy taxes. He told MPs on Wednesday that he wanted to “roll back” environmental regulations in order to reduce household bills.
The prime minister’s announcement was criticised by campaign groups and deputy prime minister Nick Clegg. Energy secretary Ed Davey has also described attempts to cut renewable energy subsidies as crossing “a complete red line”.
Like our Facebook Page
Solar-Powered Solutions for Lowering City Infrastructure Carbon Footprint
How to Prioritize Sustainability When Studying Abroad
EHS Management is Making the Construction Industry Greener
Best Sustainable Practices in the Construction Industry in 2024
Comparing Renewable Energy: Solar Power, Wind, Hydro & Bio
Maximizing Home Efficiency: The Renewable Way
10 Easy Ways To Make Your Home More Eco-Friendly
Energy Management Mastery: 4 Tips for Green Property Owners
Wonderful Ways to Make Your University Lifestyle Greener
How Construction Companies Can Ensure Sustainable Practices
Insider Tips for an Eco-Friendly Dubai Vacation in 2024
The Coming Social & Environmental Challenges of eCommerce
How You Can Cool Your Home Without Warming the Planet
Polythene Bags and Food Safety: Crucial Role in Food Packaging
How Can Field Service Companies Reduce Their Carbon Footprint?
Solo Eco-Tourism Misconceptions That Need To Be Debunked
5 Tips for Creating a Sustainable Living Space
Embracing Sustainability: 7 Tips for Eco-Friendly Shopping
Crypto Market Makers Are Becoming More Eco-Friendly
Eco-Friendly Benefits of Energy Efficient Mortgages
- Features8 months ago
What is the Eco-Friendliest Option to Wash Your Dishes?
- Environment12 months ago
6 Home Improvements You Can Make to Help the Environment
- Editors Choice11 months ago
7 Tips to Minimize the Negative Impact Businesses Have on the Environment
- Environment12 months ago
The Truth About The Environmental Impact of Dogs