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
How to Find an Eco-Friendly Termite Control Service Provider in Malaysia
Eco-Friendly Vegans Win Most Battles Not the War
3 Iconic Chicago Billboards Eco-Friendly Advertisers Can Learn from
EnviroSolar’s Abe Issa Discusses Success in Green Entrepreneurship
How Sports Could Be Impacted by Climate Change
What Eco-Friendly Patients Should Know about Online Therapy
6 Reasons Why Meal Delivery Services are Eco-Friendly
The Path for Retail’s Sustainable Future
4 Eco-Friendly Ways to Treat a Sinus Infection
4 Strategies for Eco-Friendly Real Estate Investors to Find Properties
How Managed Print Services Helps to Reduce Paper Waste
Why Scientists Are Concerned About ‘Forever Chemicals’ In Drinking Water
Meat Farming Is Only Getting Smarter, Easier & Eco-Friendlier
What is Eco-Friendly Homesteading and How Does it Affect Your Insurance?
Importance of Using a Water Purifier in an Area with High Pollution
Alternative Financing Ideas for Green Businesses that Shun Banks
Tencel Material Demand Shows Britain Is More Eco-Friendlier Than Ireland
How To Invest in Clean Energy Stocks in Only Five Easy Steps!
How To Secure Funding As An Eco-Entrepreneur?
4 Amazing Eco-Friendly Businesses Worth Starting in 2021
- Features8 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy9 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features8 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Invest10 months ago
The Eco-Friendly Evolution of Bitcoin Over the Years