Wholesale gas and electricity prices have eased back over the past 2 weeks (down 5-7%) in line with the general pullback in global energy prices. Nevertheless they still remain at high levels compared to retail prices meaning that further retail price increases, from those suppliers that have not yet moved, are still a virtual certainty.
Wholesale energy prices have continued their strong new-year rally. The whole 1-year forward wholesale gas price is now up 15.5% on its 2007 close with 1-year forward electricity wholesale price up 10.7%. Both indices are now more than double their 2007 lows and in the case of electricity is back up to its previous 2006 high (wholesale gas is still some 20% off its 2006 peak).
It is an open question whether the current rate of increase, or indeed current wholesale price levels, can be sustained. However, while wholesale prices remain at current levels the justification for significant retail prices by energy suppliers grows stronger, and the outlook for consumers correspondingly bleaker. Continue reading →
Wholesale gas prices (1-year forward) continued to rally during the first week of 2008 finishing another 7.6% up since the beginning of 2008. The primary driver has been the rising global price of energy. This now leaves the wholesale gas price at 1.90p/kWh, more than double its 2007 low, but still 27% below its 2006 peak.
Similarly wholesale electricity prices (1-year forward) pushed ahead another 5% since the beginning of 2008. Wholesale electricity prices, at 6.19p/kWh, are now almost double their 2006 lows and heading back towards their previous 2006 high.
The npower retail gas price increase, which came into effect on 5th January 2008, has pushed the average retail selling price of gas to 2.583p/kWh (excluding VAT) and the average retail selling price of electricity to 11.30 (excl VAT). npower’s own average prices are considerably higher at 2.883p/kWh and 13.09p/kWh respectively. Continue reading →
Wholesale gas prices (1-year forward) finished 2008 at 1.76p/kWh. That is 50% up on where they began the year and almost double the 0.93p/kWh low recorded on 21st Feb 2006, although still 32% off their 2006 peak.
Wholesale electricity prices (1-year forward) finished 2008 at 5.92p/kWh. That is up 44% on where they began the year and 90% up on 3.13p/kWh low recorded on 20th Feb 2006. Continue reading →